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alpha
12-19-2010, 20:29
State Budgets: Day of Reckoning - 60 Minutes - CBS News (http://www.cbsnews.com/video/watch/?id=7166293n&tag=contentMain;contentAux)

When or if the Federal government stops Federal Stimulus funding this spring...Many states/counties/cities/ etc. will not be able to continue spending more than they take in for taxes. It is expected to cause severe economic turmoil next year if immediate changes do not occur.

Apparently New Jersey has one of the few Governors (where the state is in possible financial trouble) that is openly speaking out on trying to slash spending and stop spending more than they take in. Some people are expecting Municipal Bond defaults occurring next year in many states...

Repeat:::Some people are expecting some Municipal Bond defaults occurring beginning next year.







Also good info from yahoo...10 worst states for retirees:::
the-10-worst-states-for-retirees: Personal Finance News from Yahoo! Finance (http://finance.yahoo.com/focus-retirement/article/111588/the-10-worst-states-for-retirees?mod=fidelity-readytoretire&cat=fidelity_2010_getting_ready_to_retire)

People of Illinois, California, New York, Rhode Island, New Jersey, Ohio, Wisconsin, Massachusetts, Connecticut and Nevada — you probably already know

bfmorgan
12-19-2010, 20:42
State Budgets: Day of Reckoning - 60 Minutes - CBS News (http://www.cbsnews.com/video/watch/?id=7166293n&tag=contentMain;contentAux)

When or if the Federal government stops Federal Stimulus funding this spring...Many states/counties/cities/ etc. will not be able to continue spending more than they take in for taxes. It is expected to cause severe economic turmoil next year if immediate changes do not occur.

Apparently New Jersey has one of the few Governors (where the state is in possible financial trouble) that is openly speaking out on trying to slash spending and stop spending more than they take in. Some people are expecting Municipal Bond defaults occurring next year in many states...

Repeat:::Some people are expecting some Municipal Bond defaults occurring beginning next year.







Also good info from yahoo...10 worst states for retirees:::
the-10-worst-states-for-retirees: Personal Finance News from Yahoo! Finance (http://finance.yahoo.com/focus-retirement/article/111588/the-10-worst-states-for-retirees?mod=fidelity-readytoretire&cat=fidelity_2010_getting_ready_to_retire)

People of Illinois, California, New York, Rhode Island, New Jersey, Ohio, Wisconsin, Massachusetts, Connecticut and Nevada — you probably already know
In the last decade Michigan's budget has declined by 13%. The next state with the smallest change in state budget is Missouri with a 9% increase over the decade. Michigan has been cutting budgets, and will need to cut budgets over the next several years. Taxation is much more complicated than one would expect. Increasing taxes may cause a decrease in economic activity which results in a major shortfall at the end of the budget year. Michigan can't accurately predict the income 3 months from now.....at the moment it is always much less than predicted. You are correct, the future is uncertain, and turmoil is certain.

bigman241
12-20-2010, 05:31
when a family spends, spends, spends, and then borrows to continue spending, they go broke. the problem with countries going broke, it normally sparks a world war. IE WW2

bigman241
12-20-2010, 05:32
My understanding is the running joke in Detroit is, "the last person out turns off the lights" I think we are in for a real *** of a year
In the last decade Michigan's budget has declined by 13%. The next state with the smallest change in state budget is Missouri with a 9% increase over the decade. Michigan has been cutting budgets, and will need to cut budgets over the next several years. Taxation is much more complicated than one would expect. Increasing taxes may cause a decrease in economic activity which results in a major shortfall at the end of the budget year. Michigan can't accurately predict the income 3 months from now.....at the moment it is always much less than predicted. You are correct, the future is uncertain, and turmoil is certain.

bfmorgan
12-20-2010, 07:20
My understanding is the running joke in Detroit is, "the last person out turns off the lights" I think we are in for a real *** of a year
It is frequently difficult to rent a U-Haul truck in Michigan....they are all leaving the state and not returning!

SEMO Scuba
12-20-2010, 14:34
Missouri has a balanced budget amendment. The tax payers here are very lucky to have that is in our state constitution. Our state has cut spending the last few years and will continue to do so as necessary. It makes me wonder why other state and federal governments can't do the same.

Noob
12-20-2010, 14:46
Missouri has a balanced budget amendment. The tax payers here are very lucky to have that is in our state constitution. Our state has cut spending the last few years and will continue to do so as necessary. It makes me wonder why other state and federal governments can't do the same.


I agree Semo. I was always taught. Only spend what you have. If your short save up or make cuts of unimportant/useless programs.

I'm waiting until they start cutting into welfare and other social programs. Which they should.

bfmorgan
12-20-2010, 14:56
Missouri has a balanced budget amendment. The tax payers here are very lucky to have that is in our state constitution. Our state has cut spending the last few years and will continue to do so as necessary. It makes me wonder why other state and federal governments can't do the same.
Michigan also has a balanced budget requirement. The revenue for the year is based on revenues that never seem to develop. So half way through the year there are cuts, but because the cuts are halfway through the year, the 5% cut actually looks like a 10% cut, and makes it difficult for programs to have anything that looks like a rational plan.

SEMO Scuba
12-22-2010, 12:55
Michigan also has a balanced budget requirement. The revenue for the year is based on revenues that never seem to develop. So half way through the year there are cuts, but because the cuts are halfway through the year, the 5% cut actually looks like a 10% cut, and makes it difficult for programs to have anything that looks like a rational plan.

Missouri is not as bad as Michigan, but sometimes in the middle or late part of the year they have to make some urgent spending reductions. Although I did not vote for Missouri's current governor I think he has done a very good job with or state budget.