NY Gov. Cuomo and state lawmakers agreed on a budget deal that would cut spending to close a $10 billion shortfall without new taxes or borrowing.
The $132.5 billion budget, will close as many as six prisons, and potentially result in the layoffs of 9,800 state workers.
The taxpayers of NY hope this account is true and await all the details.
Study shows that 44 states plus Wash DC expect budget deficits. In other words, they don’t have enough money to pay their bills.
Here are the 10 worst states in terms of deficits as a percentage of overall budget:
State – 2012 Projected Shortfall – Shortfall as Percent of 2011 Budget
1 Nevada $1.5 billion 45.2%
2 New Jersey $10.5 billion 37.4%
3 Texas $13.4 billion 31.5%
4 California $25.4 billion 29.3%
5 Oregon $1.8 billion 25%
6 Minnesota $3.8 billion 23.6%
7 Louisiana $1.6 billion 20.7%
8 New York $10.0 billion 18.7%
9 Connecticut $3.2 billion 18%
10 South Carolina $877 million 17.4%
NY Gov Cuomo said “New York state is functionally bankrupt.” “In a down economy, this is a death spiral.”
He spelled out a plan to eliminate as many as 11,500 state jobs through layoffs and attrition. Of course the unions oppose this and want him to raise taxes. Lets see what happens!
Probably the largest single cost of local and sate government is in K-12 government education (public schools). It eats up around one third of all of their revenues.
To make matters worse, governments routinely fudge their education figures. This study found that costs are actually 44% higher than reported.
And the outrageous costs don’t stop there. When you take a cold hard look, the study found that public schools cost more than private schools!
Some example per pupil costs in the study:
Wash DC $22,400
Los Angeles $19,000
After 1933, FDR pushed through a new bankruptcy law that allowed towns and cities to declare bankruptcy.
In 1975, NYC was about to declare bankruptcy when it was BAILED OUT at the last minute. By whom was it bailed out? The federal government of course.
Which state will declare bankruptcy? POLL
Anyone wonder why the state of New York has huge budget problems? The vast majority of their state and local workers are in government unions.