Cities and States are in Big Trouble

Cities and States are in trouble:

84% of cities in money trouble

Unemployment rises in 98% of cities

Forty-six states faced or are facing budget shortfalls

States and cities, by law, can’t run deficits. In other words, they need to live within their means and have a balanced budget. The end result of these city and state budget problems will be layoffs. If President Obama and Congress pass any sort of bill, it needs to either directly help states and cities or be large enough to overcome their cuts. It looks like the plan won’t be large enough now, so money needs to be sent directly to states and cities. This might be the best approach since cities and states know how to best spend money to save jobs (at least we hope they do).

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4 Responses to “Cities and States are in Big Trouble”


  1. 1 Chris Cartwright February 4, 2009 at 12:52 PM

    If Pres. Obama is going to bailout the cities and states, then the Mayors and Governors need to put the money to better; then they did in the past. The money should go to schools, roads, and health care, and NOT into the politicians pockets. If not then every city can expect what happened to the town of Vallejo to happen to them, which would be bunkruptcy. If we do not bailout the cities and states there might not be any money to pay off the firemen and police men that watch over our community day and night.

  2. 2 BeuWolf February 5, 2009 at 8:35 AM

    The cities should have managed their money better than letting their budgets get to their current conditions. If the cities get their bail-out funds, who thinks they’ll put it to good use? City services and schools have been having funding problems for the past 5yrs at least. They didn’t see this coming? Odviously city infostructure isn’t very secure. Raising tax’s on services and sales might help, but at the same time, everyone’s holding on to their hard earned cash ofther than going out and speding it.

  3. 3 Cristhian Ayvar February 5, 2009 at 8:47 AM

    This is a very serious issue and from the three articles it seems as though this crisis has just been waiting to happen. States have had low spending since 2001 and now it is predicted that states will be spending less money than they have been since 2001?! This is ridiculous! Especially considering that all prices are rising. For this to happen than states will need to make more cuts than they are already making, but that is just not possible. I agree with the comment made before mine, states must first fund the most essential resources. I am hopeful for the best and have my fingers crossed that, like predicted, by 2010 the states and cities economy will not be doing as poorly as it is now.

  4. 4 btorres February 24, 2009 at 3:30 PM

    i focused on the first article 84% of cities are in money trouble. When i was reading this article a notice that they have been researching for many years that the country is goint to be in recession. Now they are counting on the stimulus package to get more money to improve the education and transportation as well other things. why left the economy to get so bad. Do the economics and the president can prevente this.


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