Friday, November 14, 2008

State and city budgets falling fast

It's tough out there for both state and local budgets right now. If you look at this article from Reuters:

Three major American cities buffeted by the global financial crisis are requesting at least $50 billion in federal funds to help pay for infrastructure improvements, pensions and short-term borrowing.

Philadelphia, Phoenix and Atlanta are asking U.S. Treasury Secretary Henry Paulson to release funds from the $700 billion financial bailout authorized by Congress last month.

Philadelphia Mayor Michael Nutter will hand-deliver the request to Paulson on Friday, spokesman Luke Butler said. Five or six other cities, including Chicago, may also sign on, Butler added.
Here's another article from the CS Monitor about the current financial picture for state/local governments. That's where that graphic posted up to came from:

The nation's economic downturn is now squeezing state and city budgets – a financial turn of events that is forcing many mayors and governors to join the growing group of people on their knees asking Congress for help.

The sense of urgency has increased because states have seen their revenue fall sharply over the past two weeks. One early estimate puts the states' mid-year budget gap at $24 billion, double the estimate from the end of last month.

If Congress does not act soon on a fiscal stimulus package, states are warning of plans to lay off librarians, cut healthcare services, and ask unions to forgo raises. Some mayors are cutting recreational basketball leagues and mothballing housing projects. It's gotten so tough, the mayor of Trenton, N.J., Douglas Palmer, has had to demote firemen

"There are problems everywhere," says Iris Lav, deputy director of the Center on Budget and Policy Priorities in Washington.

"The Feds need to step in because it's extremely difficult."
Is this another thing that has been caused by the whole financial crisis?

Both items via Newsalert!


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