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A report released November 11, 2009 by the Pew Center on the States shows that some of the same pressures that have pushed California toward economic disaster are wreaking havoc in a number of other states, with potentially damaging consequences for the entire country. Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin join California as the 10 most troubled states, according to Pew's analysis, Beyond California: States in Fiscal Peril.
These states' budget troubles can have significant repercussions for their residents: higher taxes or fees; layoffs or furloughs of state workers; longer waits for public services; more crowded classrooms; higher college tuition and less support for the poor or unemployed. They also pose challenges for the nation as a whole. Together, the 10 states account for more than one-third of America's population and economic output. And actions taken by state governments to balance their budgets--such as tax increases and drastic spending cuts--can slow down the country's recovery.
"A challenging mix of economic, political and money-management factors have pushed California to the brink of insolvency. But while California often takes the spotlight, other states are facing hardships just as daunting," said Susan Urahn, managing director of the Pew Center on the States. "Decisions these states make as they try to navigate the recession will play a role in how quickly the entire nation recovers."
In the report, Pew's researchers identified factors that have contributed significantly to California's difficulties, then determined the degree to which other states are experiencing the same challenges. These factors are: (1) loss of state revenues; (2) the relative size of budget gaps; (3) increasing joblessness; (4) high foreclosure rates; (5) legal obstacles to balanced budgets--specifically, a supermajority requirement for tax increases or budget bills and (6) poor money-management practices.
Pew scored all 50 states using the best available data as of July 31, 2009.
Read more and follow the buzz via Pew Identifies States, Like California, in Fiscal Peril
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LOS ANGELES, CA: Photographer Mark Liddell speaks during the Mark Liddell book party for EXPOSED: 10 Years in Hollywood held at a private residence on November 9, 2009 in Los Angeles, California. (Photo by Charley Gallay/Getty Images for Mark Liddell)
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Las Vegas, Nevada - Andre Agassi. Andre Agassi holds his first public appearance and book signing for his autobiography Open: An Autobiography at the Encore Theater inside the Wynn Las Vegas. Photo Credit: MJT/AdMedia
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Author Marie Ndiaye speaks to the press after being awarded with the 2009 prestigious literature prize Prix Goncourt for his book Trois Femmes Puissantes in Paris, France on November 2, 2009. Photo by Denis Guignebourg/ABACAPRESS.COM Photo via Newscom
Content © 2009 Newscom All rights reserved.
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LOS ANGELES, CA - NOVEMBER 10: Author Anna Getty attends the book party launch for Anna Getty's I'm Dreaming of a Green Christmas: Gifts, Decorations, and Recipes that Use Less and Mean More at Environment LA on November 10, 2009 in Los Angeles, California. (Photo by Michael Buckner/Getty Images)
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NEW YORK - NOVEMBER 10: Sharon Quinn attends The 2009 Emery Awards and 30th Anniversary of the Hetrick-Martin Institute at Cipriani, Wall Street on November 10, 2009 in New York City. (Photo by Larry Busacca/Getty Images for Macy's)
Content © 2009 Getty Images All rights reserved.
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10 November 2009 - Beverly Hills, California - Sofia Vergara. People's Choice Awards 2010 - Nomination Announcement Press Conference held At The SLS Hotel. Photo Credit: Kevan Brooks/AdMedia
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Follow the Buzz via Queen Latifah is set to host again for this
year's People's Choice Awards 2010!
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