Wednesday, April 11, 2007

Housing Slump Pinches States in Pocketbook-what to do?

is the title of a NY Times story that documents the following(thanks to Mish):

  • In Florida tax revenue is projected to drop this year for the first time since the energy crisis of the 1970s.
  • New Jersey could face a $2.5 billion shortfall by mid-2008, according to Governor Jon S. Corzine, and may lease its turnpike or its lottery to a private company to raise money.
  • In California income tax receipts in January were $1 billion less than forecast.
  • Maryland’s real estate transfer tax revenue has tumbled by 22 percent this fiscal year.
  • Connecticut’s real estate transfer tax revenue, which state budget analysts predicted would fall by 3.6 percent, is down by 13.3 percent so far.
The sole correct answer is: budget cuts are in order. When the private sector has to cut back, the public sector has to reduce its spending to match its revenues...

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