States are without budgets as key deadline passes
Thursday, July 2, 2009 9:59 AM PDT
SACRAMENTO, Calif. (AP) — The finances of several states around the nation are sinking deeper into chaos as lawmakers struggle to work out budget differences amid a recession that has wiped out tax revenue and set the stage for dramatic cuts in service and pay for government workers.
The start of the new fiscal year arrived Wednesday with states from California to Connecticut still without spending plans in place.
Gov. Arnold Schwarzenegger declared a fiscal emergency and ordered state offices closed three days a month to save money as state officials plan to pay bills with IOUs starting Thursday.
Deep budget cuts have already forced California school districts to cancel summer school programs, moves that have affected — among others — elementary and middle school students in Los Angeles, which has the country’s second largest district.
School officials in North Carolina, Oregon, Florida and other states have also cut or limited summer classes.
Cutbacks to other programs — and possibly government-wide shutdowns — loomed with cash quickly running out.
But the pain extends far beyond the West Coast. The governor of Pennsylvania is proposing a 16 percent tax increase.
A budget veto by the Illinois governor left the state with no spending plan at all. Indiana barely avoided a shutdown.
Cut the Fat wrote on Jul 14, 2009 4:16 PM:
I wonder if when they change the oil on that 500k car that Obama rides in, if they use the economical oil, or the expensive 10 dollar a quart stuff. Or the 25 "assistance" that all make 90k+ a year for I guess assisting with something.
Cut the fat nation wide and the budgets would need little modification. People aren't worth what they are getting paid, Americans expect TOO MUCH for what little effort they put in. 120k to run a school...I mean really? 1500sqft homes that cost 500k because they sit on a hillside that has a good view of a sunset....yeah that same sub used to have corn on it, and some farmer who was smart paid very little for the land because it was hard to farm, and then a bunch of people with too much money started dropping millions to put little boxes on the hillsides, and everyone rushed in to buy them. "