Many states appear to be in recession

[Rmf3175]

The finances of many states have deteriorated so badly that they appear to be in a recession, regardless of whether that's true for the nation as a whole, a survey of all 50 state fiscal directors concludes.

The situation looks even worse for the fiscal year that begins July 1 in most states.

"Whether or not the national economy is in recession — a subject of ongoing debate — is almost beside the point for some states," said the report to be released Friday by the National Conference of State Legislatures.

The weakening economy is hitting tax revenue in a number of ways: People's discretionary income is being gobbled up by higher food and fuel costs, while the tanking housing market means people are spending less on furniture and appliances associated with buying a house.

The situation is grim in Delaware, with a $69 million gap this year, and bleak in California, with a projected $16 billion budget shortfall over the next two years, the report said. Florida does not expect a rapid turnaround in revenue because of the prolonged real estate slump there.

By mid-April, 16 states and Puerto Rico were reporting shortfalls in their current budgets as the revenue those budgets were built on — typically, taxes — fell short of estimates. That's double the number of states reporting a deficit six months ago......


http://news.yahoo.com/s/ap/20080425/ap_on_re_us/state_finances;_ylt=AmuhJvaHkMGNWlOoGrSuwDUDW7oF

[Jubilee on Earth]

Yeah, I just read that in Reuters. I have no idea how they are coming up with that map and those figures. How does one define "recession?" There is no way that Michigan is not on that map. We are absolutely in a recession. This was in our newspaper two weeks ago:

The drumbeat of bad economic news out of Michigan keeps pounding.

The Great Lakes State has lost jobs for six consecutive years, Michigan’s longest run of workplace shrinkages since the Great Depression. Automakers are laying off tens of thousands. Pharmaceutical giant Pfizer is closing up shop in Ann Arbor and Kalamazoo. The state ranks among the top three in the country for home foreclosures and mortgage delinquencies.

Analysts at Comerica Bank, which is moving its headquarters from Detroit to Dallas, say Michigan is stuck in a “one-state recession.”

The state’s political leaders are under pressure to soften the economic blows, but the downturn in the economy means there’s less money in state government’s coffers to fight back.

The state is nearly broke and is bracing for a possible partial shutdown in May. Gov. Jennifer Granholm (D) and Republicans legislators in charge of the state Senate are at odds over how to turn the ship around. The governor stresses investing more in education and job training to develop a talented work force, funded by a new tax on services, while GOP leaders are calling for tax cuts and a leaner state government to lure more business.

The government SO irritates me. I can't believe how skewed their data is. I bet it's more like "40 states" are in a recession.

Jubilee on Earth
(dot com)

[Rmf3175]

Ya, I have some renters that are from northern Michigan, and they moved out here in Wy to work. They said it's pretty bad.

[writersmom]

I've got to agree, Michigan is in a horrible recession and has been for a couple years. People around here just laugh as they are just recognizing this on mainstream news.

We're here because God directly led us here a couple years ago, though I would like to move. I'm not going to unless God makes it clear to move again.

People are constantly moving upstate then back downstate trying to find jobs. A lot of Northern Michigan's economy is based on tourism from downstaters. It is absolutely gorgeous here, but I think few out of staters know about it. With all the jobs being lost downstate tourism is drying up.

Sara

[NewWorldOrder]

I know this is referring to states in a recession, but I noticed something yesterday, when I was getting my teenage daughter's history test ready. A lot of the things that caused the Great Depression are happening all over again.

Things like easy credit and installment plans, careless investments in the stock market, interference of the Federal Reserve in the nation's economy, govt. handouts, increased govt. spending. We seem to be making the exact same mistakes that were made in 1930's. We are very bad at learning from our past mistakes. If we keep this up, we'll be in another depression.

[Issachar]

... I noticed something yesterday, when I was getting my teenage daughter's history test ready. A lot of the things that caused the Great Depression are happening all over again.

Things like easy credit and installment plans, careless investments in the stock market, interference of the Federal Reserve in the nation's economy, govt. handouts, increased govt. spending. We seem to be making the exact same mistakes that were made in 1930's. We are very bad at learning from our past mistakes. If we keep this up, we'll be in another depression. That is amazing! Yesterday my wife was doing the EXACT same thing for our 14 year old daughter. :) We are using A Beka curriculum for homeschooling. I just thought it was interesting that on the same day, same subject, same topic we were on the same page.

Issachar

[HSmomto4]

I know this is referring to states in a recession, but I noticed something yesterday, when I was getting my teenage daughter's history test ready. A lot of the things that caused the Great Depression are happening all over again.

Things like easy credit and installment plans, careless investments in the stock market, interference of the Federal Reserve in the nation's economy, govt. handouts, increased govt. spending. We seem to be making the exact same mistakes that were made in 1930's. We are very bad at learning from our past mistakes. If we keep this up, we'll be in another depression.

Yep, history is repeating itself.

[HSmomto4]

That is amazing! Yesterday my wife was doing the EXACT same thing for our 14 year old daughter. :) We are using A Beka curriculum for homeschooling. I just thought it was interesting that on the same day, same subject, same topic we were on the same page.

Issachar

I think it is so cool that there are so many homeschooling families on here! I love being a homeschooling mom!

[NewWorldOrder]

That is amazing! Yesterday my wife was doing the EXACT same thing for our 14 year old daughter. :) We are using A Beka curriculum for homeschooling. I just thought it was interesting that on the same day, same subject, same topic we were on the same page.

Issachar


Wow! How cool! :lol2 We use A Beka's 11th grade history, so they must be learning the same thing.

[Jaybird74]

The situation is grim in Delaware, with a $69 million gap this year, and bleak in California, with a projected $16 billion budget shortfall over the next two years, the report said. Florida does not expect a rapid turnaround in revenue because of the prolonged real estate slump there.



http://news.yahoo.com/s/ap/20080425/ap_on_re_us/state_finances;_ylt=AmuhJvaHkMGNWlOoGrSuwDUDW7oF

California's budget has been in the red for YEARS. This state will never overcome its shortfall because of the demo-socialists that run Sacramento. Most of the illegals in the U.S. live in California - they use the healthcare, they use the resources, they send their kids to the schools, but they don't pay the taxes like the legal population does. And Sacramento does NOTHING to prevent the massive influx of illegals from coming in - or from using state resources.

Not to mention the taxes levied on the people and businesses. Many small to medium-sized businesses flee to other states because it's too expensive here - taxes, rent, etc.

I'm amazed on a daily basis how this state stays afloat.