Bailout

States Hurting

By USLaw.com

US States currently expect budget gaps of $32 Billion for the remainder of this fiscal year and an additional $65 Billion for the following year. These estimates, of course, are likely to get worse if trends in other economi statistics are any indicator. Lacking the federal government’s ability to print money, states must find a way to close these gaps by finding additional sources of revenue and/or reducing expenditures. Might the Fed’s printing presses a third way for state’s to close their budget deficits through a federal bailout provide ? President Elect Obama has hinted at supporting a $100 Billion spending package for states.

Arizona, California, new York, Wisconsin, Minnesota, and Kansas are among the sates with the largest budget gaps on a percentage basis. The National Conference of State Legislators issued a comprehensive report on the projected state budget shortfalls.

Full post as published by Bailout Report on December 05, 2008 (boomark / email).