According to The New York Times, California, which is projected to run a $16 billion deficit in 2012, has joined more than a dozen states in using money awarded for foreclosure prevention, investigations of financial fraud, and blunting the effects of the housing crisis to fill budget gaps instead.

As fiscal year 2012 continues, many states are reporting increased revenues that help to reduce deficits and debt accumulated during the recession, but not California.

The State reports that South Carolina’s retirement system has now run a deficit of $1.4 billion dollars in just one year. Currently covering almost500,000 people, the system includes state employees, local government workers and teachers.

A roundup of local economic and spending news that is important to you.

A roundup of this morning’s must-read budget and economic stories.

“It’s being reported that California needs to raise $3 billion by March. This according to California State Treasurer Nicolas Cage.” –Conan O’Brien

Some people can’t get enough celebrity gossip. Others avoid it like the plague. But for the latter, there are times when it becomes hard to ignore.

Today, the Bureau of Labor Statistics released monthly state and regional unemployment numbers for July.

Today, the Bureau of Labor Statistics released monthly state and regional unemployment numbers for June.

California, Minnesota, and Iowa are all locked in grueling budget battles.