State and Local Governments Face Crisis

State and local governments from California to New York face significant cash crunches.

California -

"Without additional legislative measures to address the state's financial difficulties or unprecedented amounts of borrowing from the short-term credit markets," the report said, "the state will not be able to pay many of its bills on time for much of its 2009-10 fiscal year."

New York -

Without a budget-cutting plan, state officials said New York may have to delay payments to schools and local governments or borrow to pay its bills, which would hurt the state’s credit rating and its ability to borrow money.

Source: http://statepolitics.lohudblogs.com/2009/11/20/dinapoli-state-cash-crunch-getting-worse/

Source: http://www.sacbee.com/capitolandcalifornia/story/1842247.html