Many States Appear to Be in Recession

[Hissyspit]

Source: Associated Press

Many states appear to be in recession

By ANDREW WELSH-HUGGINS, Associated Press Writer
2 hours, 6 minutes ago

The finances of many states have deteriorated so badly that they appear to be in a recession, regardless of whether that's true for the nation as a whole, a survey of all 50 state fiscal directors concludes. The situation looks even worse for the fiscal year that begins July 1 in most states.

"Whether or not the national economy is in recession — a subject of ongoing debate — is almost beside the point for some states," said the report to be released Friday by the National Conference of State Legislatures.

The weakening economy is hitting tax revenue in a number of ways: People's discretionary income is being gobbled up by higher food and fuel costs, while the tanking housing market means people are spending less on furniture and appliances associated with buying a house.

The situation is grim in Delaware, with a $69 million gap this year, and bleak in California, with a projected $16 billion budget shortfall over the next two years, the report said. Florida does not expect a rapid turnaround in revenue because of the prolonged real estate slump there.

Read more: http://news.yahoo.com/s/ap/20080425/ap_on_re_us/state_finances

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[hunter]

1. There are dozens of houses in my neighborhood empty...

..most of them foreclosures. The long distance commuters who are sticking it out are hurting bad. Lots of people are upside down on their mortgages, owing more money than they could sell their houses for. The price of groceries keeps going up.

It looks a hell of a lot worse than "appear to be in recession" to me.

I've never seen anything like this.

[girl gone mad]

6. The writing has been on the wall in CA for a while now.

I remember talking with a wealthy relative a couple of years ago about all of the jobs leaving the state because businesses couldn't attract young people since the housing prices were so high. He just didn't get it. As long as people believed they would get rich selling real estate, they could ignore those kinds of unintended consequences and prop up the economy with debt.

With gas prices as high as they are, your tourism industry is going to take a hit this summer. The film industry has been in a slump which could also get a lot worse as discretionary income shrinks and the internet keeps gaining popularity.

You guys don't deserve it, but you got screwed by the Wall Street banks like Enron screwed you with a manufactured energy crisis.

[AP]

12. Historically, the entertainment business has been recession proof. The combination of the

relatively low cost and the fantasy factor is the reason.

[MikeNearMcChord]

16. But with the costs of tickets.

People are not going to go to the shows as often. Cheaper to wait months and rent videos. Same thing is happening with sporting events.

[TalkingDog]

2. News Flash: George W. Bush appears to be incredibly stupid.

This report just in from our man on the ground, Captain Obvious.

In addition, the simian frame of the first President appointed by cronies on the Supreme Court appears to house the gnarled, stunted soul of a sociopath.

Also reporting that the sky is blue, spastic yip-dogs are irritating and small children smell bad when they defecate in their pants.

Back to you at the news desk, Brian.

[AP]

13. ...or clever. Don't you think the strategy was to funnel as much wealth to the top

and then create a crisis at the end of the eight years so that the incredibly wealthy could get even more power by being in the best position to take advantage of massive, rapid changes in the economy and in society due to, say, climate change, exploding commodity prices, massive unemployment, etc...

[Demeter]

3. How Come Michigan Isn't Colored In on That Map?

We've been in Depression since 9/11. Our state budget is held together with chewing gum and huge cuts. We are losing population like a plague state. Forget about jobs; there aren't any. We're 4th or 5th in foreclosures, because we've had at least 2 more years of it than anybody else, and the easy ones are gone already.

It's hardly an accurate representation.

[poppysgal]

4. In Missouri

it's pretty bad and we aren't even in a shaded area. Is that because you can't depreciate when you are already one of the low men at the totem pole (so to speak)?:tinfoilhat:

[shaniqua6392]

5. I live in Michigan and was thinking the same thing.

It is horrible here and has been for so long. There are so many foreclosures....property values way down....job losses, etc. It has been like this for over four years. My daughter just bought a foreclosed house that was sold in September of 2006 for $138,000 and she got it in March of 2008 for $67,000. The house next door to me was sold 1 1/2 years ago for $214,000. The people lost it pretty quick and it just sold for $90,000. Gas and food prices are through the roof too.

[comtec]

7. The map is about Budget deficits, not poverty

When you have no money, you don't have a deficit, just no money, especially if the state has few assistance programs.
Part of the reason California has the problems it does is that the federal government is still holding back tax money that it should be getting.
Road and bridge money for one has always been UNDER allocated for california. We're the biggest state, yet treated like the red headed step child of the US, and always have.

Then there's the MASSIVE education fund hits that California has had over the decades, starting with daddy regan, and the WAY underfunding of our schools with federal money that never made it to us somehow.

NEXT, are all teh military bases that are DISPROPORTIONATELY CLOSED, that has murdered the local economies - that one started with bu$h 1 and continued through clinton, however many of those were done through congress where he and the dems had little control.

[OhioChick]

8. Umm....

Ohio never left the last recession.

[bdamomma]

9. bush should get his own a$$ thrown out of that WH.

stupid man, for doing this to so many Americans. He is truly a nightmare.

[Solly Mack]

10. See? Bush was right. The US isn't in a recession - the states are

I couldn't resist. And, frankly, I can see Bush using just that kind of twisted bullshit-speak.

[LynnTheDem]

11. This is what happens under Republics. ALWAYS. Proven fact.

Not that the rightwingnuttery will ever open their closed little minds long enough to look at the government's own Accounting Office and see that fact for themselves.

But George W. bUsh sets a new low even for republics.

[JCMach1]

14. FL is one of the canaries... Always enters recession early, but tends to exit early

Tourism is highly affected by recessions... that tends to kick the state budget in the groin.

[VWolf]

15. No

Shit.