Can a state go bankrupt? They wish.
State Finance Directors Warn of More Trouble Ahead - WSJ.com:
As of July 2009, California's budget shortfall was 49.3% of its general funds. States have considered drastic options to fill such gaps.
Michigan, which could end the recession with 25% fewer jobs than in June 2000 and a total of one million job losses has an unemployment rate in September was 15.3% (more likely well over 20% if you look at those who have given up looking or are working reduced hours).
"Citizens don't quite understand yet the implications of some of the cuts that we've made," Mr. Bean said. "A lot of it has fallen on local governments. I am very concerned that we're going to have a lot of insolvencies in local governments."
"'I looked as hard as I could at how states could declare bankruptcy,' said Michael Genest, director of the California Department of Finance who is stepping down at the end of the year. 'I literally looked at the federal constitution to see if there was a way for states to return to territory status.'"
As of July 2009, California's budget shortfall was 49.3% of its general funds. States have considered drastic options to fill such gaps.
Michigan, which could end the recession with 25% fewer jobs than in June 2000 and a total of one million job losses has an unemployment rate in September was 15.3% (more likely well over 20% if you look at those who have given up looking or are working reduced hours).
"Citizens don't quite understand yet the implications of some of the cuts that we've made," Mr. Bean said. "A lot of it has fallen on local governments. I am very concerned that we're going to have a lot of insolvencies in local governments."
posted by Tolli at 12:09 AM
0 Comments:
Post a Comment
<< Home