Ten States Staring at Looming Budget Crisis

0 comment
12,155 views

At least ten major states in the US are now staring at a looming budget crisis as the country continues to feel the effect of the recession.

According to Pew Center report, these states are dumped in this situation mainly because double digit budget gaps and built-in budget constraints as well as high foreclosure rates.

A new report by the Pew Center on the States released on Wednesday showed that at least ten big states in the US are now staring economic disaster in the face, raising fears that it would lead to more layoffs, higher taxes, and deeper cuts in services like health care and jobless claims.

This states include, Illinois, Arizona, Michigan, Florida, Oregon, Nevada, New Jersey, Wisconsin, and Rhode Island.

According to Pew Center, the reasons why states is now in this situation is mainly because of high foreclosure rates, rising employments, double digit budget gaps, and built-in budget constraints.

Pew managing director Susan Urahn said that the decision making capability of the affected states and the way they navigate through the hardship will play a major role on how the whole country recovers from the effects of the recession.

Urahn also said that there is a whole different result way pass California, saying that while the state is enjoying the benefits of a quick comeback, other remained unlucky.

Meanwhile, she urged US lawmakers and states governors of the affected regions to take immediate action to ward off the possibility of a wider catastrophe, which could also imperil the entire recovery process.

Based on historical data, all regions in the US suffered from worst tax revenue soon after each recession ended. It goes along with high unemployment rate, underemployment, and higher claims rate.

Ten States Staring at Looming Budget Crisis

Comment

Categories

Popular News