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The following article was published in our article directory on December 2, 2010.
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United States The Next Two Years May be Worsening the Financial

Article Category: Business

Author Name: Amanda xzh

U.S. states will be further strained by the financial

December 1, the U.S. National Governors Association and the American Association of State Budget released a new study reports that the next two years, due to sharp drop in federal aid funds, and revenue growth slow and other reasons, states will be further strained by the financial. 2012 fiscal year, state budget deficits totaling at least up to 410 billion dollars. At the same time, Obama's presidential nomination on how to reduce the deficit debate, the Committee plans to reduce federal deficits.

According to the National Governors Association and the American Association of State report released by the government budget, the U.S. state government spending in fiscal year 2011 grew by 5.3% to 645.1 billion U.S. dollars, due to the slow growth of tax revenues and the economy improved. Fiscal year 2009 and 2010, severe economic recession led to reduced state government spending for two consecutive years. However, the report said, states are still facing severe budgetary pressures.

The report said the state's budget gap next few years will continue, because tax revenue is still far below pre-recession level, although recently there have been slightly increased. Another reason is that the federal government's stimulus is reduced in fiscal year 2012 exhausted. According to the report, some states have not completed the budget report, but, according to the budget report the case of 23 states, the budget deficit in fiscal year 2012 at least 410 billion dollars.

There will be 40 next year, a civil servant facing unemployment in Wanzhou

Moody's Economy.com Zandi, chief economist, said in an interview with the newspaper, in 2011 as many as 400,000 working in state government bodies of Americans face unemployment. Increasing complexity of recent U.S. unemployment crisis is likely to spread to government agencies, which means that relatively strong before the government civil service jobs has shrunk.

The United States, a Washington think tank Center on Budget and Policy priorities, the forecast is even more shocking, the agency said that if those doing business with the government at all levels of the company are also included, there will be 90 million in 2011 due to government cut public expenditures are facing unemployment. The Associated Press reported that employees of many government agencies, the stability has become an aging of the past. If the state governments in the next fiscal year can not fill the total 141 million budget deficit, government agencies will face more massive layoffs.

Because the states are facing serious budget deficit, some states began to shrink the size of government, increase taxes, and the first time in decades to substantial reductions in government staff. At present, 26 states cut government jobs, and another five states were forced to dismiss temporary staff. The face of tight budgets, many states will pass on the burden of local governments, municipalities so the budget deficit worse.

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