The State Budget Apocalypse
December 20, 2010 7:14 AM Subscribe
CBS investigates the next financial meltdown: The coming crisis with U.S. state budget shortfalls.
California, which faces a $19 billion budget deficit next year, has a credit rating approaching junk status. It now spends more money on public employee pensions than it does on the state university system, which had to increase its tuition by 32 percent.There are a number of linked videos in line with the article. The primary video can also be seen on YouTube (unfortunately with ads): State Budgets: Day of Reckoning.
Arizona is so desperate it sold off the state capitol, Supreme Court building and legislative chambers to a group of investors and now leases the buildings from their new owner. The state also eliminated Medicaid funding for most organ transplants.
New Jersey...has the highest taxes in the country, a $10 billion deficit and a depressed economy when first-year Governor Chris Christie took office. But after looking at the books, he decided to walk away from a long-planned and much-needed project with New York and the federal government to build a rail tunnel into Manhattan. It would have helped the economy and given employment to 6,000 construction workers.
Illinois...currently has about $5 billion in outstanding bills in [Illinois state Comptroller Dan Hynes]'s office and not enough money in the state's coffers to pay them. He says they're six months behind.
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