10 Most Broke States

[w¡n9Nµ7 §£@¥€r 123]

Coming in at the top of the busted list is California, which is going through a miserable budget crisis. But there are also some surprises on the list, including Alaska and Vermont.

California: $53.7 billion shortfall or 58 percent of its budget

Perhaps no state has a more daunting problem to overcome than California. Its massive deficit is larger than the entire budgets of several states. The state has almost a $27 billion gap to close before balancing its budget. The $53.7 billion figure adds in the massive gap that the state has already closed.

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Whatever happens in California could actually have implications for all of us: the state accounts for 12 percent of the nation's gross domestic product and the largest share of retail sales of any state.

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Arizona: $4 billion shortfall or 41 percent of its budget

Arizona was ground zero for the collapse of the housing market. Cities like Phoenix have seen home prices plunge while jobs have dried up. Income tax collections are down 34.4 percent and the sales tax is down as sakes of building supplies and other consumer goods plunge.

The governor and legislature have been battling over way to close the budget gap. At issue: more than $630 million in spending cuts, including the elimination of a welfare program for disabled people waiting for Social Security benefits.

Gov. Jan Brewer wants to temporary hike the state's sales tax from 5.6 percent to 6.6 percent. For each of the three years she expects it will take to turn around the state's economy, the hike would bring in an extra $1 billion. But lawmakers have balked.

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Nevada: $1.2 billion or 38 percent of its budget

Nevada was hit hard by the housing market. But the state also got whacked by a drop off in tourism and gambling revenue.

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The state is looking at decreasing teacher pay by 4 percent and giving state employees 12 unpaid furlough days, the equivalent of a 4.6 percent pay cut ... Gov. Jim Gibbons has threatened to veto any new taxes.

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To help close the gap, the governor has ordered cuts to education, including delaying an all-day kindergarten expansion and eliminating funds for gifted and talented programs and a magnet program for students who are deaf or hard of hearing.

Illinois: $9.2 billion or 33 percent of its budget

Last week, Gov. Pat Quinn vetoed a budget proposal that would taken away $5 billion in federal funds from social services for the poor and homeless. However, the state still does not have a budget in place even though the new fiscal year began on July 1.

Quinn ... has stated he will veto any other budget proposal that does not call for a tax increase ... The governor's administration will carry out $1 billion worth of budget cuts.

These include a $185 million cut in state operations, a $140 million cut in health insurance, $175 million cut in education and $283 million cut in the Department of Human Services. More than 2,500 state workers may lose their jobs and those who stay may be required to work 12 unpaid furlough days.

New York: $17.9 billion or 32 percent of its budget

Home to Wall Street, New York state has seen its personal income tax collections fall a whopping 48.9 percent in the last year, according to the National Conference of State Legislatures.

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For households with taxable income above $500,000, the tax rate went from 6.85 percent to 8.97 percent. For those earning above $200,000 to $300,000 - depending on filing status - but less than $500,000, the rate jumped from 6.85 percent to 7.85 percent.

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Gov. David Paterson has proposed a $698 million reduction in school funding, $3.5 billion cuts in healthcare services and layoffs for more than 500 state government workers. To further help balance budgets, tuition at public universities also increased.

Alaska: $1.35 billion shortfall or 30 percent of its budget

The county's most-remote state had a shockingly large shortfall this year for one simple reason: oil prices plunged.

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That drop caused the state's corporate taxes -- essentially all oil money -- to fall 32 percent compared to last year.

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New Jersey: $8.8 billion or 30 percent of its budget

The Garden State has seen a double-whammy of problems from a drop in Wall Street salaries and also a fall in gambling revenues in Atlantic City. To close the gap, the state eliminated 2,000 jobs by encouraging early retirement, leaving vacancies unfilled and laying off staff.

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The state is also skipping making a $940 million payment to its pension fund.

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New Jersey also raised about $1.2 billion in new taxes, mostly from tax filers earning $400,000 or more. It also scaled back and eliminated property tax rebates for people earning $150,000 or more.

The state also increased so-called sin taxes on cigarettes, lottery winnings larger than $10,000 and alcohol, except beer.

Oregon: $4.2 billion or 29 percent of its budget

With nearly $800 million in tax increases, Oregon is among a handful of states to recently approve big tax hikes. Budget cuts announced in May anticipated the layoffs of 1,700 state employees and a 14 percent budget cut in higher education, for $2 billion in cuts.

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Vermont: $278 million or 25 percent of its budget

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Lawmakers tapped money from the state's education fund to pay overall expenses, resulting in a loss in state aid of about $18.4 million to the Education Fund for fiscal year 2010. Lawmakers also enacted a provider rate cut from 4 percent to 2 percent for contracted healthcare services, impacting mental health providers, sign language interpreters and rehabilitation programs for children.

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Vermont eliminated approximately 10 percent of the jobs in its Agency of Natural Resources, a state department dedicated to protecting the environment.

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Vermont now charges a sales tax for digital music downloads and liquor, has raised tobacco taxes and will shut down several highway rest areas.

Washington: $3.6 billion or 23 percent of its budget

Budget cuts would result in the loss of 8,000 state jobs and 40,000 fewer people receiving state-subsidized health insurance. There are already 14,000 people on the waiting list for that program.

In April, state legislators approved plans to cut the state's public education system by nearly $800 million ... Measures passed this year will also allow the state to raise the current 7 percent cap on undergraduate tuition increases to up to 14 percent at public universities. Approximately 9,000 fewer students are estimated to be able to enroll in a state university as a result.

A 70 percent cut in Medicaid for low-income seniors took effect on July 1, forcing elderly care providers to lay off staff.

Connecticut: $4.1 billion or 23 percent of its budget

Rounding out the worst 10 is Connecticut, where there is currently no budget in place after Governor M. Jodi Rell vetoed Democratic legislators' budget proposal earlier this month. Rell issued a 34-page executive order to provide $1.4 billion for state operations for the month of July.

Last September, the state's Department of Children and Families budget took a heavy hit, including a more than $9.8 million cut in residential services and shelters for children in state custody. The Department of Developmental Services and the Department of Social Services lost more than $8 million and $5 million respectively. Rell's latest proposal calls for $5.4 million cuts in the state's library services.

http://abcnews.go.com/print?id=8016634

[almaty 19]

Illinois is having a hard time with the budget situation..of course, the $9.2 billion or 33 percent of its budget..is in Blago bank account and other politicians here

[dalegg 143]

We're number 1! We're number1!

[w¡n9Nµ7 §£@¥€r 123]

We're number 1! We're number1!

[dalegg 143]

We're number 1! We're number1!

Seriously though-58%?? Gawd.

[w¡n9Nµ7 §£@¥€r 123]

We're number 1! We're number1!

Seriously though-58%?? Gawd.

The writeup I thought was most interesting was Nevada's. The Guv will veto any new taxes, even sin taxes, but is ok with cutting teacher salaries and eliminating magnet schools? My God!

[NickD 202]

Surprised Wisconsin isn't on this list with talk about cutting government services. OH MY GOD, how will we survive without governmental services!!

By the way, WHAT services? Only one I am aware of is getting screwed in the butt, think I would survive well without that.

[Mr. Big Dog 10,747]

Alaska: $1.35 billion shortfall or 30 percent of its budget

Isn't this the state run by the very governor that proudly celebrated her "responsible, fiscally conservative budget" for FY 2010 less than two months ago? Now she's put her state into the top 10 of the most broke states? First Wasilla, then Alaska. Good thing it stops right there.

[Chica Yeyé 41]

I live in a poor state??? #######, i am disgusted.

[Mr. Big Dog 10,747]

I live in a poor state??? #######, i am disgusted.

Well, I am surprised FL didn't make the list. The legislature is working hard to get us there, though.

[EstebanTrabajos 7]

The Lone Star state still strong yeeeha!!

[Dr. A ♥ O 203]

I'm not surprised Idaho missed the list. We actually had a several million surplus when Kempthorne was Governor and they gave some of it back to us in tax refunds. I wonder how we're doing now though?

[NickD 202]

I'm not surprised Idaho missed the list. We actually had a several million surplus when Kempthorne was Governor and they gave some of it back to us in tax refunds. I wonder how we're doing now though?

Sates like Idaho and Iowa are good states, people are hard working and not living on top of each other with no major cities. If Wisconsin could dump Milwaukee and Madison, New York, New York and Albany, and Illinois dump Chicago and Springfield, they would be good states too.

It's those major cities and the capitols where all the parasites reside. Did I leave out the District of Colombia? Just one city there.

[100% Al Ahly Fan 53]

Surprised Wisconsin isn't on this list with talk about cutting government services. OH MY GOD, how will we survive without governmental services!!

By the way, WHAT services? Only one I am aware of is getting screwed in the butt, think I would survive well without that.

I know, right? Minnesota's cutting things left and right too. As for services, I don't see any, and I been a single parent for years now! Apparently I make too much money...which is crazy since I never seem to have enough...argh!

[w¡n9Nµ7 §£@¥€r 123]

It's those major cities and the capitols where all the parasites reside.

That's hilarious, the vast majority of our gross product comes from our metropolitan areas and yet you bumpkins continue to believe otherwise.

The 100 top urban metropolitan areas in the US account for about 12% of the physical mass, but yet account for 65% of the population, 75% of gross national product. 7 out of every 10 vehicle miles traveled are in urban metropolitan areas.

Source: http://www.visajourney.com/forums/index.php?showtopic=151081

Edited July 10, 2009 by ƒµ(l{ ¥0µ n00b