Saturday, June 20, 2009

Hey New York your next after California

For now, folks living in New York can watch the soap opera playing out in California from a comfortable, continent-sized distance.

But after that drama plays out, New York is next.

Smart Money: Right now, at least 47 states are facing significant shortfalls in their 2009 and/or 2010 budgets, according to the Center on Budget and Policy Priorities, a think tank in Washington, D.C. And many of those states are looking to tax hikes to help fill the gaps.

“Pretty much everyone is doing poorly,” says Kim Rueben, senior research associate at the Tax Policy Center. “It’s just a question of who’s hurting more than others.”

The top honor goes to California, which is projecting that it will fall about $25 billion short come fiscal 2010. Taking second place is New York with a projected $17.6 billion deficit for fiscal 2010, according to the National Conference of State Legislatures, a bipartisan policy research organization in Washington, D.C.

This can't be a surprise to anyone. New York is like California. It's highly exposed to some of the worst areas of the economy. It's got a huge government apparatus, and its political system is something of a joke (see: The New York State Senate). Thank god for New Yorkers that there isn't a referendum system here, or the state would've gone bust years ago.

New York should be hoping for a California bailout, since that's their fate, too.

You can read more from the think tank here.


  1. Neither Callayfornia as Swartz calls it, or Neeew Yaak, as Bloomy calls it, would be any place I would want to ride out these comming tough times. I would think one would have a probable 125% chance of getting shot, in either place, for your wallet.

  2. Title should read: Hey, New York, you're next after California! Please correct!

  3. The best place to be
    is where everything is free
    and the party lasts all night
    and every gal looks all right
    and plates of food drift by
    on a river of fine red wine
    and candy canes and brussel sprouts
    hang from every tree
    can't you see?
    The best place to be is free!

  4. Please advise, where is this place? It sure isn't the US of A.

  5. This free place is Canada , no im just kidding , getting very very bad here , exept for Northern Ontario , little boom gong on there , My town all is dead , every factory shit down , crime is up 20% , Child services reporting 22% increase in Family affairs difficulties , we are headed for the shit hole , and this place is Sherbrooke,Quebec Canada , Canada's poorest city , a place decimated by de-industrialisation

  6. This not a suprise to any New Yorker...or at least none of us who have read a newspaper in the past ten years.


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