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State budget woes to hit consumersJuly 1 marks the beginning of the 2010 fiscal year for most states, many of which are weighing a number of tough decisions and making spending cuts that could ultimately take a toll on consumers - but keep state budgets in check. The Center on Budget and Policy Priorities recently researched state budget conditions and its findings are available in a new report. Among the results of the research, the center found that the total budget shortfall for fiscal year 2010 is expected to be $166 billion across 48 states and exceed $350 billion through 2011. But what does all this political and financial jargon mean for you and your family? The Center on Budget and Policy Priorities says that at least 39 states have enacted cuts that help bridge the budget gaps but that are expected to harm "vulnerable residents." "State policymakers face an increasingly challenging battle against an economy that is still getting weaker," said Nicholas Johnson, director of the center's State Fiscal Project. "There is no letup in sight when it comes to making hard choices." Individuals and households struggling to pay off credit card debt may also begin to worry about other financial obligations that will be affected by state budget cuts. According to the report, cutbacks have affected healthcare in 21 states, elderly services in 23 states and K-12 schools in 24 states. Some other programs and services that may have been cut remain intact in part due to the stimulus funding being funneled to various states. Tax increases are another way states may fund programs and spending projects.
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