Here is our weekly look at some of this week’s most interesting, and consequential, budget- and economy-related issues in the 50 states:
The Economist takes a look at how the fiscal crises in the U.S. states are like the situation in Greece. The magazine concludes the analogy is a little overblown, but still says the nation’s capitals have plenty of problems.
Time this week takes a deep dive into the fiscal state of the states. It discussed taxes, spending, and the pension crisis and is a must read for anyone who thinks the fiscal crisis is contained to the federal government.
As Washington debates sending more stimulus money to the states, The Washington Times wonders whether this money is helping, or just delaying, the much-needed fiscal reform that needs to happen in state capitals. Evidence the answer is likely the latter: 30 states have passed budgets that require money from Congress in order to be in balance. (The Wall Street Journal reported Wednesday on the same issue.)
The Denver Post reports Colorado will start its next budget year — which begins in July – $72 million in the hole.
Some good news from The New York Times: states are starting to tackle the shortfalls in the pension system. Some states, like New Jersey, are cutting pensions for future hires while others, like Colorado, are cutting annual benefit increases.
Why are states and local governments in such trouble? A little line in this Washington Post story tells us why: obligations by state and local governments have DOUBLED in the past 10 years.
