Nine States Seen in Peril Similar to California: Report

Publication: Reuters

Author: Lisa Lambert


11/11/2009 - California, the Golden State that has been pummeled by economic problems ranging from plunging revenues to political spending battles, may soon find that it is not alone.

Arizona is next in line to suffer some of the same troubles, followed by Rhode Island and Michigan, according to a study released by the Pew Center on the States on Wednesday.

Oregon, Nevada, Florida, New Jersey, Illinois and Wisconsin round out the list of the 10 states with the worst economic decay, the Pew Center said in the report, "Beyond California: States in Fiscal Peril."

Pew's conclusions are drawn from an analysis around the experiences of California, which ranks as the world's eighth largest economy, during the recent recession, the longest and deepest since the Great Depression. The study looked at how a surging foreclosure rate and rising unemployment led to a steep fall in California's revenues, with the state's political structure and record of poor fiscal problems crippling the ability to respond to the crisis.

Read the full article States Draw Up Plans for Year of Even Bigger Budget Cuts on Reuters' Web site.

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