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Saturday November 21, 2009
Archive of Home on Wednesday July 01, 2009

Financial crisis torments states

(Updated 11:29 a.m. EDT, July 1, 2009)

California may begin issuing IOUs this week because of the state’s unresolved budget crisis. But government disruptions were averted at least temporarily in five other states that missed a July 1 deadline for closing billion-dollar budget gaps.

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Furloughs cut into state services

With states facing a $121 billion shortfall in the next fiscal year, a growing number of them have turned to squeezing their workforce for savings, and effects both great and small will be felt.
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CA: 11th-hour votes on state budget fail

With a day to go until a cash crisis would force the state to stop paying its bills, lawmakers and Gov. Arnold Schwarzenegger worked into the night Tuesday but failed to reach a budget agreement.
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AZ: Legislature approves budget plan; Brewer's stance unclear

Legislators gave final approval to a 2010 state-budget plan early Wednesday morning and now await word on whether Gov. Jan Brewer will accept it or force budget negotiations to begin anew.
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DE: State budget passes in marathon session; taxes, fees to jump $206 million

Completing a marathon session that lasted until 4 a.m. today, the General Assembly passed a $3.09 billion budget, $206 million in tax and fee increases and eliminated an unprecedented $800 million revenue shortfall.
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PA: Another fiscal year ends, another Pennsylvania standoff ensues

As Pennsylvania missed its budget deadline for the seventh year, Senate Republicans on Tuesday presented united opposition to Gov. Ed Rendell's proposed state tax increases and demanded the Democrat-controlled House vote on a spending plan.
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IL: Quinn wants tax hike -- even if it takes months

State government limped into a new budget year Wednesday without a solid spending plan and rookie Gov. Pat Quinn threatened to drag the fight out all summer until he gets an income tax increase.
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IN: Budget brings good, bad news for state schools

Indiana's lawmakers passed a $27.8 billion two-year budget Tuesday that supporters touted as a triumph in a recession but critics said came at the expense of students in urban and rural districts.
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CT: No budget deal to start fiscal year

Gov. M. Jodi Rell said Tuesday that she has signed an executive order to keep state government running when the new fiscal year begins today without a new budget enacted.
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OH: Stalemate continues as interim budget is signed

Like many Ohioans, state government now is living paycheck to paycheck.
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NC: N.C. gets an extension on its deadlocked budget

North Carolina got an extension. The legislature did not pass a new state budget by the end of the fiscal year at midnight last night, but lawmakers did approve a temporary spending bill to keep government operating.
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MS: Miss. lawmakers finish most of $6B budget, not PSC

Bleary-eyed Mississippi lawmakers approved most of the $6 billion budget before the state fiscal year started early Wednesday, addressing Medicaid and public safety while leaving only the state's utility regulatory agency unfunded.
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US: Tax hikes and cutbacks -- States crunched

NEW YORK -- It's not a happy new year for the states. States are carrying their financial woes into the new fiscal year, which for most started on Wednesday. Some had yet to pass their fiscal 2010 budgets. For others, tax hikes and draconian spending cuts went into effect.
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US: Some hard-hit states get less stimulus

Some of the states worst hit by the recession are getting far less federal economic-stimulus money per person than states faring better.
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PA: Rendell lines up loans, credit for state employees

In a sign that state budget talks could drag on for weeks or months, Gov. Ed Rendell today announced that 10 banks and credit unions are offering no-interest loans and lines of credit for up to 69,000 state employees whose paychecks could halt July 17.
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NY: New York Senate Democrats claim quorum, start passing bills

ALBANY, N.Y. -- New York Senate Democrats have begun voting on a host of bills and declaring them passed after claiming that a Republican lawmaker walking through the chamber gave them the required quorum.
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TX: All ready for the special session? Lawmakers introduce bills responsive to Perry's call

The Legislature meets tomorrow (Wednesday) to kick off the special session called last week by Gov. Rick Perry, and transportation will dominate the agenda. It could be a quick ride, or a bitter fight -- depending on how willing lawmakers are to push their differences down the road, until they return for the 2011 regular session.
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IA: A first for Iowa -- Alcohol revenue for year tops $100 million

Iowans are buying more liquor, beer and wine, bucking an economic trend that has seen sales of many retail products plunge over the past year.
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SC: New sex revelations fuel calls for resignation

Six of 27 members of the conservative Senate Republican Caucus Tuesday night issued a letter calling on Gov. Mark Sanford to resign.
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MN: At last, a second senator for Minnesota

Al Franken, a satirist known for his biting political humor, is headed to the U.S. Senate, the survivor of an epic legal struggle that opponent Norm Coleman finally conceded he couldn't win.
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Tracking the recession: Budget deadline looms

Unlike the federal government, states have to balance their budgets. But several states still have not completed spending plans for the fiscal year that begins July 1.
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Weekly wrap: Feds release long-awaited stimulus job guidelines

The Obama administration tells state officials to take "a simple headcount" of jobs saved or created by the stimulus program. Meanwhile, the demand for some special jobs is soaring. Officials also warn states not to shortchange education when balancing budgets. 
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Ga. hotline aims to cut mental health costs

Even as the recession chips away at mental health services across the country, Georgia’s around-the-clock psychiatric hotline is finding a way to weather the storm — and other states are watching closely.

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Tracking the recession: States target jobs

Though unemployment is rising in nearly every state, aggressive efforts to create jobs are paying off — modestly — in many states.
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Reports: State income levels plunge

States racing to cobble together new budgets for their July 1 deadline could find themselves sinking back into red ink sooner than they think, as Americans’ income and the taxes they pay on it shrink, new data show.
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Weekly wrap: Sales tax fight splits GOP in Arizona

Arizona Gov. Jan Brewer (R) sues her own party over the budget. The U.S. labor department releases May unemployment data, and Illinois says it can’t afford to pay for indigent burials. For a quick update on the top recession news in the states, read Stateline.org's "Weekly wrap."
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New courts tailored to war veterans

Twenty years after local officials in Miami opened the nation's first drug court — a specialized "treatment court" aimed at rehabilitating low-level drug offenders instead of locking them up — state lawmakers in Illinois and Nevada are applying the same idea to a different population: war veterans who have had run-ins with the law.
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Recession ushers in more tobacco taxes

In a double-whammy for smokers, the federal government and seven states raised taxes on cigarettes this year. But the new taxes plus President Obama's vow to sign a bill imposing sweeping regulation of the tobacco industry threaten to shrink cigarette sales — and revenues for state coffers.
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Gay marriage legal in six states

(Updated 4:40 p.m. EDT, June 4, 2009)

With the exception of Rhode Island, same-sex marriage is now legal throughout New England, and neighboring New York could be next. On June 3, New Hampshire became the sixth state, including Iowa, to legalize gay nuptials. But despite these gains by the gay rights movement, the United States is still a nation divided over whether to redefine marriage.

In this comprehensive backgrounder, Stateline.org maps the state of play in all 50 states, including charts, a historic timeline, and coverage of landmark court decisions, voter referendums, state legislation and federal and international laws.


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