If this article is right, then the job losses at the state level has barely started unless the federal government bails them out.
States are looking at a total budget gap of $180 billion for fiscal 2011, which for most of them begins July 1. These cuts could lead to a loss of 900,000 jobs, according to Mark Zandi, chief economist of Moody's Economy.com.
To close this gap, governors and lawmakers will be forced to lay off state employees, cut services and postpone capital projects, said Michael Bird, federal affairs counsel for the National Conference of State Legislators.
Already, states laid off 44,000 workers in the 12 months ending in January, according to federal labor statistics.
I think it's accurate
states are in deep trouble and then, they are more political than the federal IMHO. (We know about California).
Some of these states have not been really hit yet with real estate...if one notices the maps on real estate price drops, it's still fairly pocketed to certain counties vs. across the board price drops....but many counties get revenues from property taxes and frankly I think there is at least 15% nationwide price drops to go on residential real estate. I don't think prices have bottomed at all.
Oregon, for example, is busy increasing taxes yet they will not, will not take on the health insurance companies.
While California is getting all of the news, Oregon is also getting hit with a rate increases. Last year was unreal, over 30% and this year for individuals it's another ~20%...plus they keep trying to change the definition of care so basic services are not covered.
The states could do something about this, but they sit on their hands...
building bicycle lanes. In Portland, they are busy with composting and bicycle lanes....meanwhile basic bus service is being canceled and people are being laid off.