U.S. states’ debt tops $4 trillion

August 30, 2012 by · Leave a Comment
Filed under: Economic News 

Wow, that is scary being that the states can not print money and only issue debt, they now account for almost 1/3 the size our national debt.  Sadly the reality is that will need to reduce spending across all aspect of government life.   There is no free lunch and as long as we cling to this failed ideology then we are doomed for continued economic ineptitude.  The longer we put this off the more painful the cure will be.   Regardless of political affiliation, we should all take a little time out of our ever increasingly busy lives to take to our local and federal representatives and ask them about our current debt levels and if they have concerns with it.   If they do then you should urge then to seek out others in both parties and start talking about options.

Reuters – America’s 50 state governments owe $4.19 trillion, including outstanding bonds, unfunded pension commitments and budget gaps, according to a new report.

At $617.6 billion, California had by far the biggest total debt, more than twice the total of No. 2, New York, with $300.1 billion owed, according to State Budget Solutions, a research and non-partisan advocacy group.

Texas, with $287 billion owed, New Jersey, with $282.4 billion, and Illinois, with $271.1 billion, ranked next among states with the biggest total debt, according to State Budget Solutions. Vermont had the smallest debt load at $5.85 billion.

The annual study said state governments had benefited in the last year from smaller budget gaps and reductions in loans taken from the federal government during the worst of the Great Recession to pay unemployment claims.

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