State Budgets: The Day of Reckoning
December 20th, 2010Via: CBS News / 60 Minutes:
By now, just about everyone in the country is aware of the federal deficit problem, but you should know that there is another financial crisis looming involving state and local governments.
It has gotten much less attention because each state has a slightly different story. But in the two years, since the “great recession” wrecked their economies and shriveled their income, the states have collectively spent nearly a half a trillion dollars more than they collected in taxes. There is also a trillion dollar hole iln their public pension funds.
The states have been getting by on billions of dollars in federal stimulus funds, but the day of reckoning is at hand.
Research Credit: JH
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