Budget Collapse in the Bankrupt States

October 10. 2009 (LPAC)—AP News released a survey of the most "stressed" counties in the U.S., creating a list, using a formula combining foreclosures, bankruptcies and unemployment. Topping the list is Imperial Valley, California, which registered over 30 on their scale, where anything over 11 indicates "stress." Of the top twenty, California claimed seven of the top spots, Michigan had four and Nevada three.

Three states are making headlines today, with their economic collapse:

MASSACHUSETTS State Revenue Commissioner Navjeet Bal revealed to a budget hearing that tax collections in September fell $243 million below projections, and she may recommend that governor Duval Patrick lower income projections for the year by $400 million to $600 million.

NEW YORK'S governor David Paterson ordered state agencies Tuesday to slash a combined $500 million from their budgets this year to help close what he expects to be a $3 billion deficit. According to the Albany Daily News, he has directed state agencies to cut spending by 11%, with heavy cuts expected to hit secondary education.

IOWA'S governor Chet Culver announced across-the-board cuts Thursday, which total nearly $600 million. The 10% cut is the largest of its kind since 2001, when Governor Tom Vilsack cut four-point-three percent. All departments have significant budget cuts, including the Department of Human Services, which was considered "safe" during the last budget crunch, but now its budget will be slashed over $132 million.

WASHINGTON, DC has unceremoniously fired 250 teachers from District schools. Unions are saying that the cuts were selective, targetting activist types, since schools just hired 100+ teachers in August.