States Going Belly Up Part 8 - The Panic Seeps In

Fallout intensifies for The Dutch, Greece, Thailand, and most importantly the U.K.,

Perhaps what is even more compelling is what is happening closer to home. From New Hampshire -

The state’s budget deficit gap has widened to a projected $290 million and thus far state House of Representatives budget writers failed to come up with enough proposed revisions to erase the entire deficit.

Numbers released Tuesday by the Departments of Revenue and Administrative Services predict a $200 million shortfall in revenue this biennium. The governor had estimated revenue would come in about $130 million short. But when adding other factors, such as the loss of money from the Joint Underwriting Association’s medical malpractice fund, the total budget shortfall that the state is facing could be close to $290 million.

 Nebraska -

At least one state senator believes a special budget-cutting session looks more likely, with Nebraska tax revenues falling $56 million behind projections for the year to date.But other state officials saw a few glimmers of hope in a report released Monday on April tax revenues.

 Kentucky -

The Office of State Budget Director reported Monday that revenue to the state General Fund was 5.4 percent below the level for April 2009.The General Fund took in $782million last month, compared with $826.7million the previous year.

And the grand daddy, California -

The state's expected revenue from personal income taxes fell about $3 billion short of expectations in April, prompting concern about further state cuts as the governor prepares to submit a revised budget to the Legislature.

 The Real Effect
Not only are the States broke, so are the ones that actually pay the bills, the taxpayers. Hence lower revenue. Who wants to bet that this is only going to get worse?

Look for States to get desperate as the lines get drawn in the sand. With increased pressure on the States to balance their budgets (Oh the horror!) and the plebs being instructed to make double the bricks with less straw, the US starts to resemble the situations over in Europe more and more.

The first move which is already more-or-less occurring is for States to cut "essential" services in an attempt to cajole the populace into being generous. But the serfs have had enough and won't tolerate much more cutting. So the game of chess continues with States enforcing ever increasing "voluntary" fees. Of course, should the serf not pay said voluntary fee, there is always a nice cell waiting for him.

Knowing their back is up against a wall, look for States to start to moan to the Feds about a State emergency fund similar to Europe's. Except, this ploy won't work either. After all someone has to pay the piper and the globalists seem to feel it's you.

But this is exactly what the IMF and globalists want to stoke the riotous fires at home.