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NEWS ABOUT: state budgets

Senate Passes Aid Bill, Drags House Back

State aid bill makes it through filibuster

(Newser) - The House is headed back to Washington early, after Senate Democrats unexpectedly broke through a Republican filibuster on their much-delayed state aid bill. The bill provides $26.1 billion to prevent state worker and teacher layoffs. Democrats got Susan Collins and Olympia Snowe to once again cross the aisle and... More »

Our Economy: Damned If We Do, Damned If We Don't

Short-term fixes needed, but they hurt our long-term prospects

(Newser) - Steven Pearlstein surveys the mess of our economy and finds that we're in quite a pickle: "To fix the economy in the long run, we have to weaken it in the short run—yet weakening it in the short run makes it just that much harder to fix it... More »

Schwarzenegger Drops State Workers to Minimum Wage

State controller refuses to cut smaller checks

(Newser) - Arnold Schwarzenegger upped the ante in his budget standoff with the state legislature yesterday, ordering almost all state workers' pay cut to the federal minimum wage—$7.25 per hour—effective immediately. The State Controller, Democrat John Chiang, says he won’t obey that order, the LA Times reports, but... More »

California May Put Digital Ads on License Plates

Critics worry it'll distract drivers

(Newser) - California lawmakers are considering turning every license plate in the state into a kind of digital billboard, in an effort to close the state’s yawning $19 billion budget deficit. Proponents say that selling ads on the plates will earn the state money, and allow it to spread the word... More »

Unemployment Programs Going Bust in 40 States

States face raising taxes or slashing benefits

(Newser) - The combination of high unemployment and bad planning means that the jobless compensation programs of all but 10 states are on course to go broke by 2011. Some 25 states are already borrowing federal money to issue benefit checks. State lawmakers are coming under intense pressure to either shrink payments... More »

NY State of Mind Almost as Bad as Calif.'s

Both states' revenues, budgets, legislatures create cause for alarm

(Newser) - Don’t look now, New Yorkers, but your state government is sinking to California-like depths of lousiness. New York’s 2010 budgetary fitness ranks below that of 33 other states in Pew’s latest ranking, trailing the likes of Louisiana, Alaska, and South Carolina. And that’s unlikely to improve,... More »

Strapped Prison to Inmates: There's No Free Lunch

Officials say they have prisoners' best interests at heart

(Newser) - Indiana criminals can no longer count on getting three square meals a day in prison; one cash-strapped lockup has cut lunches on weekends. Prisoners at Plainfield Correctional Facility now get two meals a day on Fridays, Saturdays, and Sundays: a “brunch” at 6am, and dinner at 4pm. The program... More »

Expanded Gambling Won't Be a Windfall: Silver

(Newser) - The many states hoping gambling will revive their troubled budgets are in for an unpleasant surprise, writes Nate Silver for Esquire. Gambling is supposed to be recession-proof, but that hasn’t been the case this time. "The year 2008 was the first time in history that total casino gaming... More »

Calif. Budget Cuts Means Ax Falls Sooner for Strays

Holding period halved from 6 days to 3; may doom lost pets before owners can find them

(Newser) - California's budget deal could mean lost family pets meet the Grim Reaper sooner rather than later, reports the San Francisco Chronicle. The deal cuts the time shelters are required to hold animals from six days to three, and officials fear the move could mean animals in shelters lacking resources will... More »

Furloughs Freeze State Services

Strapped states try to balance budgets by shutting down

(Newser) - States across the country are slashing their labor costs by putting workers on furloughs and cutting services, the Wall Street Journal reports. California, Maine, Maryland and Michigan close state agencies on Fridays. Others are opting to remain open every weekday, but stretch services by placing thousands of workers on rolling... More »

Tax Collectors Use MySpace, Google to Find Deadbeats

Public profiles can provide valuable income information for revenue agents

(Newser) - Internet-savvy state tax collectors are using a new tool in tracking down evaders: social networking websites. Tax collectors are taking advantage of the fact that an individual’s MySpace or Facebook profile often contains quite a bit of professional information, the Wall Street Journal reports. Agents in Nebraska, for example,... More »

States Lose Shirts as Gamblers Cut Back

(Newser) - Every state but Utah and Hawaii allows some form of legal gambling, and most have come to rely on it as a growing source of revenue. Unfortunately, a lot fewer people are hitting the slots or buying lotto tickets these days, the Wall Street Journal reports. Commercial casinos produced 2.... More »

Calif. Senator to Sue Schwarzenegger Over Budget Cuts

(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 »

Brother, Can You Save a Park?

(Newser) - Cash-strapped California parks are searching for private money to cope with the state's sweeping budget cuts, the Los Angeles Times reports. Up to 100 of California's 279 state parks and beaches could be forced to close after Labor Day. Just 13 of them make enough money to survive without state... More »

Plan to Free 27K Inmates Threatens Calif. Budget Deal

(Newser) - A plan to slash the number of inmates by 27,000 could sink California's long-delayed budget deal, the Los Angeles Times reports. Angry Republican state lawmakers threatened to back out of the agreement after learning of the plan, which would give prison officials authority to let any inmate over 60... More »

Feds Reject Plea for Calif. Bailout

Aid ruled out for now as state warns of fiscal meltdown

(Newser) - The federal government has rejected pleas for emergency aid from top California officials, reports the Washington Post. State officials warn that its budget crisis is approaching the point of a "fiscal meltdown" that will cause massive cuts and deepen the state's recession. But the Obama administration fears bailing out... More »

Legal Pot Backers Target 2010 Calif. Vote

Advocates step up efforts to have legalization put on next year's ballot

(Newser) - Advocates of marijuana legalization—and taxation—have stepped up their efforts to include the issue on California's November 2010 ballot, the San Francisco Chronicle reports. Backers say the tide of public opinion has turned strongly in favor of legalizing and taxing pot for personal use, especially in light of its... More »

Fed Dollars Overtake Taxes as States' Top Income Source

Federal money exceeds revenue from major taxes for first time ever

(Newser) - For the first time, state governments are receiving more money directly from the federal government than they collect in sales, property, and income taxes, reports USA Today. As the economic downturn saps tax revenue, stimulus money has filled the gap. Says an analyst, “This has more to say about... More »

States Ax Programs for Elderly, Kids

(Newser) - States are slashing social services across the US, crippling programs for children and the elderly that might save money in the long run, the New York Times reports. Barack Obama's $787 billion stimulus plan is easing the pain by helping low earners, but at least 34 states are cutting aid... More »

Cash-Strapped States Raise Taxes as Revenue Declines

At least 10 states face substantial budget gaps

(Newser) - A precipitous decline in tax revenue has at least 10 states considering major increases in sales or income taxes to close budget gaps that in some cases run into the billions, the Wall Street Journal reports. States like Oregon, facing a $4.4 billion budget gap and 10.8% unemployment,... More »

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