6 States Face Mounting Budget Crisis, Report Warns

Law360, Los Angeles (July 17, 2012, 6:27 PM EDT) -- Six U.S. states are facing long-term budget problems caused by rising health care and pension costs, dwindling tax revenues and cuts in federal funding that may raise the threat of more bankruptcies for local municipalities, according to a report released Tuesday.

The State Budget Crisis Task Force, a nonpartisan group co-chaired by former New York Lt. Gov. Richard Ravitch and former Federal Reserve Chairman Paul Volcker, released a report studying the finances of California, Illinois, New Jersey, New York, Texas and Virginia — which together represent...
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