Article Treasure Cove

A recent study is showing that many states are heading toward an economic failure. Everybody knows that California is facing a back breaking shortfall. The state government decided to try and ease the crisis by increased borrowing but that hasn’t worked and are now facing greater deficits than before..

This debt will most likely mean higher taxes, additional layoffs of government employees, crowded classrooms, and fewer services in the nations most populated states. States most at risk for the next year and many years to come include Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island, Wisconsin, and obviously California.

The Pew Center of the United States released a recent study that showed double digit gaps in the budget along with rising unemployment and thousands of home foreclosures. This study required lawmakers to take a realistic look at the monetary catastrophe and what actions should be taken in order to try and throw the system back on track.

Although there were only 10 states that made this list they account for almost one-third of the American citizens. This is a big deal and it affects every American whether you reside in one of these states or not. Economies and states are so mixed together and interconnected that it affects everyone.

Susan Urah remarked “Decisions these states make as they try to navigate the recession will play a role in how quickly the entire nation recovers.” California is the most exposed state on the top 10 but fellow states face the same hardships California does. California at present has nearly $60 billion in budget adjustments that must be changed. This in all likelihood means cuts to education, social service programs, temporary tax increases, as well as stimulus spending.

Governor Schwarzenegger estimates that the deficit for this year will run between $12.4 and $14.4 billion. But by the end of this year the governor plans to have a spending plan in place. However, will this turn the economy around? Because of the global financial crisis in the last two years California has seen general spending reduced by $20 billion. Many Californians are questioning how they will face growing taxes and how their lives will change with all of the service cuts.

The government is telling residents that they have come a long way but extreme actions are still required. Previous cuts were inconsequential and affected fewer people, but now government has to cut necessary funding which will affect growing numbers of people. These will be the most difficult cuts for Californians to bear..

With a bit of luck California and the other nine states will be able to make budget cuts that will affect fewer people and that will finally turn their budgets around. These states still aren’t out of the woods but with some planning and scrimping they will most likely be able to turn around and get on the road to recovery. Which in turn, will improve the economies and budgets in not only these states but the rest of the nation.

About the Author Info
Diane Johnson graduated with Bachelor of Science from the University of Utah and enjoys writing about current events, politics, college degrees, online education, and the office.
Diane Johnson earned a bachelor’s degree in Political Science from the University of Utah. She likes to write about the news, politics, college degrees, online education, and continuing online education.

Tags: budget cuts, california, economy, states, u.s.