"We're facing a cliff in 2011 when stimulus dollars run out," said Mitchell Bean, director of the Michigan House Fiscal Agency. "There is not an end in sight, even in recovery."
As of July 2009, California's budget shortfall was 49.3% of its general funds. States have considered drastic options to fill such gaps.
"I looked as hard as I could at how states could declare bankruptcy," said Michael Genest, director of the California Department of Finance who is stepping down at the end of the year. "I literally looked at the federal constitution to see if there was a way for states to return to territory status."
Posted by | 11.18.2009 at 11:49 PM
CA looked for a way to return to "territory status" due to budget problems. Michigan is in similar trouble, and Illinois and New York are right behind them. Could it be any more obvious that wherever Unions are dominant, they end up collapsing a state's finances? If the Federal Government starts to bail out states, we'll be that much closer to "National Socialist" status (not meant as an inflammatory reference to WWII Germany), as opposed to a "Federal" system. The word "Federal" will mean nothing once we start bailing out individual states and allowing Washington, DC to run them, to gobble them up like vultures gobble rotting flesh. From a WSJ OpEd 11/13/09.