Business

Toughest cuts are ahead...
by Barbora Misakova

Decades ago, everything or at least most of the things, was easily observable. Bad and poor farmer just like bad miller could be recognized easily. There were no animals on the farm and no flour in the mill, no water which could drive the mill-wheel, the agricultural buildings were almost ruined or look like they should collapse every minute. While in the past if you had no money, you had no business, today are the rules different. When someone has financial problem, there are thousands of ways how to borrow money and “solve” this little inconvenience. Highlighting that endless borrowing is not the best way how to deal with financial problems and insolvency is n! ot needed. For all that there are 10 US states that have to face looming budget disasters. Arizona, Michigan or California – these are just some of the states confronting national recession in a local scale. Still and quickly growing budgets threaten also Capitol buildings in Arizona, spending on schools and health care and in the most of the states lead to raising taxes, more government layoffs and deep cuts in services. California is one of the most vulnerable states and so it have to rely on poor money-management practices. Since February, California has made cuts to education and social service programs and temporary tax hikes just to get some more money to the budget. But most of these fixes are not expected to last. That is why Gov. Arnold Schwarzenegger estimated California’s deficit on $14.4 billion and warned of toughest cuts which are still ahead, and not only for California.

related story (sgx15880): h! ttp://ne ws.yahoo.com/s/ap/20091111/ap_on_re_us/us_state_bud...

by Barbora Misakova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 2:14 PM