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10 states face financial peril

Dropping tax revenue, rising unemployment and yawning budget gaps are wreaking havoc in states from Arizona to Wisconsin, a new report shows.

NEW YORK (CNNMoney.com) — The same economic pressures that pushed California to the brink of insolvency are wreaking havoc on other states, a new report has found.

And how state officials deal with their fiscal problems could reverberate across the United States, according to the Pew Center on the States’ analysis released Wednesday.

The 10 most troubled states are: Arizona, California, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin.

Other states — including Colorado, Georgia, Kentucky, New York and Hawaii — were not far behind.

The list is based on several factors, including the loss of state revenue, size of budget gaps, unemployment and foreclosure rates, poor money management practices, and state laws governing the passage of budgets.

These troubles have forced these states — as well as many others — to raise taxes, lay off or furlough state workers and slash services. These actions can slow down the nation’s recovery, especially since these 10 states account for one-third of the country’s population and economic output.

“Decisions these states make as they try to navigate the recession will play a role in how quickly the entire nation recovers,” said Susan Urahn, managing director of Pew Center on the States.

In a separate study released Wednesday, the Center on Budget and Policy Priorities found that states will likely have to make steep cuts in their fiscal 2011 budgets, which start next July 1 in most states. That’s because the critical federal stimulus dollars will run out by the end of 2010.

These cuts could take nearly a percentage point off the national gross domestic product and cost the nation 900,000 jobs, the study found.

Here’s a summary of what Pew found is plaguing each of the states:

California: The Golden State’s housing collapse — and resulting unemployment surge — has plagued the state’s economy. The weakening economy prompted revenue to fall by nearly a sixth between the first quarters of 2008 and 2009. State lawmakers have limited ability to deal with California’s massive budget gap due to several voter-imposed restrictions, including requirements that all budgets and tax increases pass the legislature by a two-thirds majority.

Arizona: The state depends heavily on a growing economy to bring in tax revenue, and lawmakers don’t have a lot of leeway to address budget deficits thanks to voter-imposed spending constraints. Lawmakers relied on one-time fixes to balance its budget instead of making long-term changes.

Rhode Island: The Ocean State has among the highest unemployment rates in the nation and among the highest foreclosure rates in New England. High tax rates, big budget deficits and a lack of high tech jobs are hurting its chances to pull out of the doldrums. State government has a poor record of managing its finances

Michigan: The state never climbed out of the recession that started in 2001, and matters only became worse during the Great Recession. Two of the Big Three Detroit-based automakers went bankrupt in 2009, sending shockwaves through a state on track to lose a quarter of its jobs this decade. The recession accelerated drops in state revenue, and has left Michigan’s government trying to deal with today’s problems on a 1960s-sized budget.

Nevada: Nevada is one of the recession’s big losers as its gaming-based economy suffered. Year-over-year revenue has fallen for two consecutive years, a record. But changing tax laws is tough because some are written into the state constitution.

Oregon: Oregon’s leading industries, such as timber and computer-chip manufacturing, have been hit hard in the recession. Lawmakers have approved more than $1 billion in new taxes to keep it afloat. But voters in January will have the final say on another $733 million in new income taxes.

Florida: For the first time since World War II, Florida’s population is shrinking — bad news for an budget built on new residents flocking to the Sunshine State. Lawmakers raised $2 billion in new revenue this year, but could face a similar shortfall next year.

New Jersey: The Garden State, which has been plagued by years of fiscal mismanagement, spends more than it collects in revenue. The collapse of Wall Street, which supports about one-third of New Jersey’s economy, has only made matters worse.

Illinois: Since the last recession earlier this decade, the state piled up huge backlogs of Medicaid bills and borrowed money to pay its pension obligations. The state’s current budget still relies heavily on borrowing and paying bills late.

Wisconsin: Wisconsin has a long history of budget shortfalls. It also borrows frequently to cover operating expenses, among other measures. Unemployment is climbing as manufacturing, the state’s largest sector, sputters.

The Center on Budget and Policy Priorities, a liberal research group, says the states need additional federal fiscal relief to avoid budget cuts that will hurt both the economy and people. State and local spending accounts for about one-eighth of the GDP.

Already, less than five months into fiscal 2010, several states are looking at additional budget cuts. Rhode Island announced Tuesday it is facing a revenue shortfall for the current fiscal year of $130.5 million. Gov. Donald Carcieri said the state must examine its aid to local governments, since it has already cut personnel and social service programs.

And in California, Gov. Arnold Schwarzenegger said Tuesday that his state is facing a budget gap of up to $7 billion. The state will likely announce across-the-board spending cuts in January.

“So we just have to hang in there, tighten our belts and live within our means,” he said.

The center would like to see the federal government allocate another $50 billion, while economist Mark Zandi said about half of that would be needed. Congress should pass the additional aid now since states are currently crafting their fiscal 2011 budgets.

States received billions of dollars in funding from the Obama administration’s $787 billion stimulus package, including $87 billion for Medicaid and $48.3 billion for maintaining education and other key services.

The stimulus funds plugged about 30% to 40% of the budget gaps states were facing, and created or saved more than 300,000 jobs, said Iris Lav, the center’s senior adviser.

But the economic downturn is greater than administration officials expected when the Recovery Act was passed in February, Lav said. That’s why more assistance is needed now.

Budget projections show that states could face deficits as large as $260 billion in 2011 and 2012 after stimulus funding is exhausted. State economies usually take up to two years longer to recover after the nation’s fiscal health begins to improve.

New budget cuts and tax increases “will be a serious drag on the economy at just the wrong time,” said Mark Zandi, chief economist at Moody’s Economy.com.

Without assistance, the economy could slide back into a recession, he said.

State regulators shutter Commerce Bank of Southwest Florida. Closure will cost the FDIC $23.6 million.

NEW YORK (CNNMoney.com) — State regulators shuttered Commerce Bank of Southwest Florida in Fort Myers, Fla., Friday night, bringing the 2009 national tally to 124.

Customers of Commerce Bank of Southwest Florida bank are protected, however. The Federal Deposit Insurance Corp., which has insured bank deposits since the Great Depression, currently covers customer accounts up to $250,000. Read the full story

Hurricane Ida weakened to a tropical storm today after the U.S. Gulf Coast braced itself for more troubling weather. In Nicaragua last week, Hurricane Ida destroyed homes, damaged schools and bridges as it moved through the Caribbean. Currently, the National Hurricane Center has a public advisory on its site.

“A tropical storm warning remains in effect from Grand Isle Louisiana eastward to the Aucilla River Florida … including New Orleans and Lake Pontchartrain.”

U.S. airlines are alerting travelers that flights may be affected in Alabama, Florida, Louisiana, and Mississippi. Here are some change policies listed on their websites:

Delta: States that you may make a one-time change to your ticket without fee if you are scheduled to travel to, from, or through the following destinations: Fort Walton, Fla. (VPS), Gulfport, Miss. (GPT), Mobile, Ala. (MOB), New Orleans, La. (MSY), Panama City, Fla. (PFN), Pensacola, Fla. (PNS) and Tallahassee, Fla. (TLH) for impacted travel on Nov.9-10. Read the  Delta Weather Alert page for Hurricane Ida for full details and restrictions. Contact: (800) 221-1212.

Continental: Offers the option to reschedule or re-route your travel once, without penalty, if you are ticketed to/from one of these cities with original travel dates on Nov. 9-11: New Orleans, La. (MSY), Baton Rouge, La. (BTR), Lafayette, La. (LFT), Lake Charles, La. (LCH), Gulfport/Biloxi, Miss. (GPT), Mobile, Ala. (MOB), Pensacola, Fla. (PNS), Fort Walton Beach, Fla. (VPS). If your flight has been cancelled, a refund to the original form of payment can be requested. Get full information about their re-accommodations policy here.

American Airlines: I couldn’t find a specific reference to Ida on its website. American does list a Hurricane Protection Policy for its travelers. It says it is valid for passengers ticketed for travel within the area and dates of a hurricane watch issued by the United States National Hurricane Center.

U.S. Airways: Waived the standard change fee, advance reservation and ticketing requirements for customers with travel to, from or through Mobile, Ala.; Fort Walton Beach, Fla.; Pensacola, Fla.; Tallahassee, Fla.; Gulfport/Biloxi, Miss. Nov. 9 – Nov. 11. See the travel advisory page for more information on its revised ticket policy.

— Jen Leo, Los Angeles Times Travel & Deal blogger

http://travel.latimes.com/

Read the full story

K.C. Nlemchi (Katy, Texas/Cinco Ranch) is another in a terrific junior class of running backs in Texas. The ESPNU 150 Watch List member has been on the radar of college programs, since the spring of his freshman year and is closing in on his first offer.

“I’m pretty sure Texas A&M will offer me and maybe Texas Tech too. UCLA is recruiting me hard,” said Nlemchi.

Like all talented juniors, the 6-foot-0, 210-pound back is being bombarded with mail on a daily basis. Programs from the Big 12, Pac-10 and Notre Dame keep the mail box full.

http://insider.espn.go.com/

Within the Greater Houston boundaries, there are not many teams that can claim the undefeated title after eight weeks of play. But out West, the Katy Cinco Ranch team holds steady at 7-0 and has had several decisive victories over opponents during the 2009 campaign.

Though solid play is going on across the board, one could make the argument that the hardcore groundwork of running back K.C. Nlemchi plays a major factor in the Cougars’ success.

But let the 6-foot-1, 206-pound junior tell it, he is just doing what needs to be done.

“Pretty much I go and do what I have to do. I don’t want to let anyone down because there is a lot expected of me and I take that to heart because it’s a blessing to play on this team and be a part of this community,” Nlemchi said. “I know my role and I know my part and a lot of teams key on me. But we are all a team. As long as I have everyone blocking for me, then I am going to just grab the ball and run with it.”

And in the latest 40-0 win over rival Morton Ranch, Nlemchi handled up. He had 10 carries for 122 yards and two touchdowns. Though the numbers seem solid, Nlemchi, and even the Cougar offense, wanted to bring a little more to the table.

But, judging by the numbers, it was a slow start and strong finish.

“I mean when the defense is doing their part, the offense needs to come out and do our part too,” Nlemchi said. “They (Morton Ranch) expected a lot and was ready for me. You could tell by the way they played. They hit hard and I came off the ball twice. I haven’t fumbled much in my life. I never do that so I give them much respect for that.”

So far for the season, Nlemchi has been updating his resume weekly. In 2009, he is averaging 8.75 yards per carry and is well past the 1,000-yard mark with 1,146 yards with 15 touchdowns. Nlemchi is active in the passing game as well with nine catches for 151 yards and two scores.

This level of play has brought some awareness to Cinco Ranch back and is hearing from quite a few schools, mainly in the Big 12 Conference.

“I don’t have any offers yet, but I am hearing from a lot of schools,” Nlemchi said. “I getting a lot of letters from Oklahoma, Texas A&M, Notre Dame and Texas Tech.”

In speaking with Cinco Ranch coach Don Clayton, the Aggies have shown quite a bit of interest in his running back. Also, in recent talks with Nlemchi himself, the idea of keeping his talent within the borders of the state would be nice.

But a few exceptions could be made.

“It would be a blessing to be able to stay in the state, and I really like Texas, but that is not like I am claiming a favorite or saying much about that,” Nlemchi said. “But if I were to go out of the state to like a Florida or USC, you know somewhere big like Oklahoma.”

With Oklahoma, Nlemchi said that there have not been a heavy dose of communications, but the ones that have come were good.

“I have been invited to a few games, but haven’t made any yet,” Nlemchi said of his Sooner interest. “I would love to know more about Oklahoma. They are talented, aggressive and disciplined. And they execute well as a team.”

Nlemchi and the Cougar team get ready for another district match up this Friday against Mayde Creek.

http://oklahoma.scout.com

If Florida doesn’t suspend Brandon Spikes, then the SEC office should. Unless the video below has been doctored, this is simply unacceptable from a college football player. Spikes is a great player. He is also an emotional player. And he clearly let his emotions get the best of him when he stuck his hand inside Waushan Ealey’s facemask. My hope is that Florida coach Urban Meyer looks at the video, is horrified, and suspends Spikes for at least one game. Spikes needs a reality check. Look, I know enough former players who have told me that a lot of bad things happen in pileups. But this is right out in the open and everything was caught on camera. This is a player intentionally trying to hurt another player. It’s simple: If coaches are going to be held accountable for their actions and officials are going to be held accountable for their mistakes, then players must be held accountable for what they do. There is no place in the game for something like this.

http://blogs.ajc.com/barnhart-college-football/

NASA will tomorrow launch a spectacular mission to bomb the Moon. Their LCROSS mission will blast off from Cape Canaveral, Florida, carrying a missile that will blast a hole in the lunar surface at twice the speed of a bullet. The missile, a Centaur rocket, will be steered by a shepherding spacecraft that will guide it towards its target – a crater close to the Moon’s south pole. Scientists expect the blast to be so powerful that a huge plume of debris will be ejected. Read the full story

You can watch the videos here

Senate blocks HUD grants to ACORN

The community organization is facing more bad publicity after two conservative activists posed as a prostitute and pimp and videotaped workers’ advice on getting housing and reporting income.

Washington -  The Senate voted Monday to block the Housing and Urban Development Department from giving grants to ACORN, a community organization under fire in voter-registration fraud cases.

The 83-7 vote came as ACORN , which stands for the Assn. of Community Organizations for Reform Now, is receiving bad publicity related to surreptitious videos. Two conservative activists posed as a prostitute and her pimp, then released a hidden-camera video in which ACORN employees in Baltimore advised the couple on house-buying and how to account for the woman’s income on tax forms. Two other videos, aired frequently on media outlets such as the Fox News Channel, depict similar situations in Brooklyn and Washington, D.C.

If the House agrees with the Senate, ACORN could not win HUD grants for programs such as counseling low-income people on how to get mortgages.

Last week, the Census Bureau severed ties with ACORN, saying it does not want the group’s help with the 2010 count. The group, which advocates for poor people, conducted a voter registration effort last year and became a target of conservatives when some workers were accused of submitting false registration forms with names including Mickey Mouse.

Last week, prosecutors in Miami-Dade County, Fla., arrested 11 people on charges that they falsified hundreds of voter applications during a registration drive last year. ACORN tipped off authorities to the suspected fraud.

On the hidden camera controversy, ACORN says it has fired the employees involved but accuses Fox of pumping up the scandal.

In a statement, Bertha Lewis, ACORN’s chief organizer, said the tapes had been doctored and violated Maryland’s wiretapping laws.

Fox News spokeswoman Dana Klinghoffer said the tapes were vetted editorially before they were aired.

The video was created by James O’Keefe and Hannah Giles and posted on BigGovernment.com. Breitbart.com, which owns the website, did not immediately respond to requests for comment.

Read the full story

STILLWATER, Okla. — The old man wanted on the field, but security was everywhere. No. 9 Oklahoma State had just finished off No. 13 Georgia 24-10 — one of the biggest wins in OSU history — and security guards surrounded the turf of Boone Pickens Stadium.

No visitors allowed. No family members. No fans. No exceptions.

OK, one exception. The old man wanted on the field, and the sea of security parted. It was like watching the arrival of Moses, had Moses been as important to Israel as T. Boone Pickens has been to Oklahoma State. The sea parted, and what do you know? This is Boone Pickens Stadium, and that’s 81-year-old Boone Pickens. And now he’s hugging … I’ll be damned. Seconds after the final horn, the man he’s hugging is OSU coach Mike Gundy. Read the full story

ALBANY — Workers at Capital Region hospitals are going to have to get a flu shot this year or face losing their jobs.

The requirement is part of a new emergency regulation adopted earlier this month by the State Hospital Review and Planning Council that requires that all hospital workers get the flu vaccine — and that it be a requirement for employment. Read the full story

Last night Zero Hedge obtained some interesting documents from the CDC web site.  They contain blank ‘forced quarantine’ orders from Iowa and Florida regarding novel H1N1 — including quarantine to a ’secure detention center’– which appear to be recent — dated April 2009.  Some may be aware the NIH and CDC just held an H1N1 conference in DC — August 19-21 2009 — that focused on ‘mass fatality management’. For many, this should be cause for concern.  Read the full story

MIAMI, Florida (CNN) — With winds of 135 mph, Hurricane Jimena was approaching Mexico’s Baja California peninsula on Sunday as a Category 4 storm, forecasters said.

Read the full story

Now this is interesting. CNN has an article (click to read) on their website that “debunks” rumors about the health care bill (found here)….There’s one problem though….they aren’t being completely honest.

Here’s the opening paragraphs from CNN.com’s article:

WASHINGTON (CNN) — A woman asked Rep. Allen Boyd at a town hall meeting the other day if health care reform proposals would force people to let the government access their bank accounts.

“That’s not true,” the Florida Democrat responded. “When someone sends you something on the Internet that sounds crazy, how about just checking it a little bit?”

The CNN Truth Squad, which fact-checks political claims, has debunked the bank-access rumor as false. Yet that claim, and others that have been disproved, keep coming up in the national debate on health care reform, inflaming an already emotional issue.

Representative Allen Boyd, I agree with your suggestion that each citizen should check what they hear to prove fact or false. When you start calling something “crazy”, maybe you, sir, should read the actual bill and do some checking yourself.

Let’s flashback to Peter Parker’s post about health care: Why should you care about the Health Care Bill?

Peter touched on this topic already.

Page 59, lines 21-24 of the Health Care Bill:

21 ‘‘(C) enable electronic funds transfers, in

22 order to allow automated reconciliation with the

23 related health care payment and remittance ad

24 vice;

So….its still just a crazy internet rumor….right? Representative Boyd, I suggest you do your own research. CNN might also want to write a new article “debunking” the current one they have up.

CNN’s “Truth Squad” is looking more like the “Propaganda Squad” right now.

ORLANDO, Fla., Aug. 8 (UPI) — U.S. Sen. Mel Martinez, R-Fla., says he’s quitting Congress as soon as Florida Gov. Charlie Crist can appoint someone to replace him.

That gives Crist a unique opportunity to replace a senator whose seat he is already seeking, The Miami Herald reported Saturday. Read the full story