States Facing Financial Crises That May 'Threaten Social Order'Submitted by Peace Gold Love on Mon, 08/06/2012 - 05:45
[NewsDay] - WASHINGTON - Former New York Lt. Gov. Richard Ravitch believes that states and localities may be facing grave financial peril as they struggle to overcome the effects of the 2008 crash and subsequent downturn. The strain may even threaten the "social order," Ravitch said during the release of the State Budget Crisis Task Force's report on Tuesday at the Newseum in Washington, D.C.
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Their first report focused on conditions in New York as well as California, New Jersey, Texas, Virginia and Illinois. Among the findings: States will face continued pressure due to skyrocketing Medicaid costs, underfunded pensions for retired public employees and volatile tax revenues, as well as reduced federal funding.
"Budget gimmicks and inadequate reporting mask and encourage fiscal problems, and make them more difficult to solve," the report concluded. "While none of our states is on the brink of financial collapse, these threats loom large."
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