Skip to: Content
Skip to: Site Navigation
Skip to: Search
THURSDAY, NOVEMBER 26, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


1

Cash-Squeezed States Warn of Collapsing Infrastructure

Fed stimulus eyed as municipal bonds wither

Share

(Newser) – Thousands of infrastructure projects across the country are on hold as states wrestle with budget crises, the New York Times reports. Gov. Arnold Schwarzenegger warned yesterday that California was “on a track toward disaster" as school, bridge, and road construction projects ceased, the victims of the credit squeeze and institutional investors' declining faith in municipal bonds.

More than 40 states are struggling with budget shortfalls and some projects have been halted midway through. Many state officials are hoping Barack Obama's plan for a huge stimulus package will revive stalled projects. But analysts warn that in crying wolf to woo federal funds, governments may be spooking the individual buyers who are now often the only takers for municipal bonds.

Gov. Arnold Schwarzenegger warned yesterday that California is on
Gov. Arnold Schwarzenegger warned yesterday that California is on "a track toward disaster" as infrastructure projects grind to a halt.   (AP Photo/Rich Pedroncelli)
Gov. Arnold Schwarzenegger calls on state lawmakers to settle their differences and reach a solution to the growing state budget deficit, Wednesday, Dec. 10, 2008.
Gov. Arnold Schwarzenegger calls on state lawmakers to settle their differences and reach a solution to the growing state budget deficit, Wednesday, Dec. 10, 2008.   (AP Photo/Rich Pedroncelli)
A police officer walks near the Pulaski Skyway bridge in Jersey City, NJ. The state has long struggled to fund repairs to the aging bridge.
A police officer walks near the Pulaski Skyway bridge in Jersey City, NJ. The state has long struggled to fund repairs to the aging bridge.   (AP Photo/Jose F. Moreno,file)
« Prev« Prev | Next »Next » Slideshow

We're hopeful, keeping our fingers crossed like every other state, that a stimulus package will come through.
- Steve Swartz, a spokesman for the Kansas Department of Transportation

« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.24.09
Murdoch and Microsoft: The Mice Are Trying to Roar
11.23.09
Books Are Bad for You
1 comment
VIEWING:
 
Shannonals
Dec 27, 08 3:31 PM CST
Didn't Gov. Arnold Schwarzenegger say the economy was in good shape shortly before the GOP convention? Reply
Vote up! Vote down!
0
LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

27 Stories

(Newser) - Just how bad has California’s budget crisis gotten? So bad that it’s holding what it’s calling the “Great California Garage Sale” this weekend, hoping to unload piles of junk and wasteful property that the state’s accrued over the years. Hundreds of items will be available,... More »

MORE ABOUT:
California • Arnold Schwarzenegger • sale • financial crisis • recession depression • budget crisis

OPINION

 Why Stimulus Gets a Bad Rap 


Aug 20, 09 10:04 AM CDT
(Newser) - The Democrats’ $787 billion stimulus package is less popular than ever—even though it’s already working, writes David Wessel for the Wall Street Journal. The case against it is weak: Fed rate cuts hadn’t slowed the recession, already a year-old at that point, making the stimulus an... More »

MORE ABOUT:
Nancy Pelosi • Barack Obama • recession • infrastructure • economic stimulus package • financial crisis • American Recovery and Reinvestment Act

(Newser) - The leader of California's Senate says he'll take Gov. Arnold Schwarzenegger to court for using line-item vetoes to slash another $500 million from the budget deal he was sent last week, the San Francisco Chronicle reports. Democrat Darrell Steinberg accuses Schwarzenegger of overstepping his authority by making the cuts. "... More »

MORE ABOUT:
California • California legislature • Arnold Schwarzenegger • lawsuit • budget cuts • state legislature • governor • state budgets • Darrell Steinberg

27 Stories


Obama weighs huge stimulus plan
Christian Science Monitor

California warns of budget meltdown
San Francisco Chronicle

Credit crisis clobbers municipal bonds
TheStreet


US  •  Business 
TwitterFollow @NewserUS on Twitter

 
California • Arnold Schwarzenegger • US states • infrastructure • bond • municipal bonds • economic stimulus package • financial crisis • state budgets

from our news partners