State Default Watch: Budget Deficit Heatmap

Many U.S. states are set to wrong-headedly enact pro-cyclical policies –- spending cuts and tax increases -– as we head deeper into the current recession. That will almost certainly make things worse, forcing the most exposed states to the edge of default, and perhaps beyond. Only then, sadly, will we see the overdue hard choices being made about what we can and should pay for.

With the preceding in mind, here is a heat map of U.S. states compared by current deficits as a percentage of FY 2009 general revenue. California, Arizona, Nevada, and Florida are in the top five (as is Rhode Island, surprisingly), but 41 states now face rapidly growing shortfalls.

Comments

[Steven Hansen:]

ah, you are right. since states don't have printing presses they are forced to act like you and me - cut spending, find a way to make more money.

and this is wrong???

your point is not lost that this tactic is recessionary. and there is no cure for a recession but time.

2008 Nov 14 11:59 PM

[Mowog:]

It seems like the more financially troubled the budget of a state, the more likely it was to vote for Sen. Obama. Expectations of "free" money for government bailouts?

2008 Nov 15 08:30 AM

[notsosmart:]

just tired of a republican that inherited a huge surplus leaves a great mess.all of new england no has no member of the republican party in the house. 6 of 8 years they controlled everything.mission accomplished & im the decider is busy deciding who to put on his pardon my cronies list.i guess scooter libby is #1.mowog is confused as the bailout was this conservative republican administrations idea.as an independent voter i could not figure out how the rep. thought they could win with that old geezer & his nobody running mate.the party took a pasting in the last 2 elections.instead of carping they should save the talk for some good legislation.sore losers are not respected.this socialism for the rich is an idea by paulson & cronies.obama cantbe worse than this fool we had for 8 years.you, your children,grandchildren... you have) will feel the mess created by this president.history will show that he was even worse & sadly the sheeples woke up too late(after the fleecing).

2008 Nov 15 09:45 AM

[goldenhinde:]

Get a grip Mowog. The Republicans put us into this frickin mess. Given your observation here another one back at you: let's have the "red" states pay for reconstituting the US economy. After all, you folks voted in these clowns and kept them there the second time.


On Nov 15 08:30 AM Mowog wrote:

> It seems like the more financially troubled the budget of a state,
> the more likely it was to vote for Sen. Obama. Expectations of "free"
> money for government bailouts?

2008 Nov 15 02:12 PM

[Ames Tiedeman:]

These numbers are not sustainable. What some of these states are doing is criminal. It is extraordinary that the entire U.S. Government only spent 92 billion for their entire budget in 1960. Some of these states need to cut spending by 50%. The United States is headed toward total ruin of the debt spending does not stop.

May 09 05:38 PM