State Budgets On Their Own  

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Jenis: Article from Bulletin/Magazine
Dalam koleksi: The Economist (http://search.proquest.com/) vol. 398 no. 8721 (Feb. 2011), page 32.
Topik: bail-out; banks; states; stimulus bill; deficits; federal government; cash; budgets

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"The era of the bail-out is over," Patrick McHenry, a Republican congressman, declared on February 9th. His subject was not carmakers or banks, but states. For the past two years the stimulus bill has propped up state governments. This year the states are still in trouble: as the stimulus runs out, they face a collective $125 billion in deficits. But the federal government will not send another infusion of cash and most states require their budgets to be balanced. So politicians in Washington are mulling over new ways to help. Two recent plans present different forms of aid. On February 14th Barack Obama's budget offered state some short-term relief. That afternoon, congressman considered letting states go bankrupt.

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