States in Trouble

Recently I was reading across this list of information from CNN and MSN.

States that will go bankrupt shortly:

• New York – should be bankrupt by Christmas
• California has struggled immensely from the housing meltdown, and state lawmakers face voter-imposed restrictions, including requirements that all budgets and tax increases pass the Legislature by a two-thirds majority.
• Arizona's lawmakers relied on one-time fixes to balance the state's budget instead of making long-term changes.
• Rhode Island faces the highest unemployment rate and the highest home foreclosure rate in New England. It also has high taxes and lacks high-tech jobs.
• Michigan has been slammed by the meltdown of the U.S. auto industry, which has lost thousands of jobs.
• Oregon's leading industries, including timber and computer-chip manufacturing, have been hit by the recession, and the state relies on a voter-imposed revenue cap, which forces the state to give taxpayer rebates when times are good but leaves it unprepared in bad times.
• Nevada has been hit by the downturn in consumer spending, which has weighed heavily on its gaming and tourism industries. Nevada is one of five states without a personal or corporate income tax , so it relies mostly on taxes from gaming and sales to finance most services.
• Florida's population is shrinking for the first time since World War II, and the Sunshine State has long banked on people moving there. Constitutional amendments passed by voters also tie the hands of budget makers.
• New Jersey has dealt with budget troubles for years. It has the highest property taxes in the nation and has increased sales and personal income taxes to help boost revenue. The financial market meltdown is also pressuring the state.
• Illinois' budget gap for fiscal 2010 was one of the three biggest in the country at $13.2 billion. The Land of Lincoln has run deficits every year since the last recession in 2001 and borrows to pay off its bills.
• Wisconsin has been hit hard by the decline in manufacturing as a result of the recession.

The 10 states account for more than one-third of the U.S. population and economic output, according to the report.

How's that socialism working out for your state? Aren't you glad we passed that 1 trillion dollar stimulus package that we needed by 7pm or we would be bankrupt?

I personally am happy to be living in Texas at this time.  It is one of the healthest states fiscially at the moment and one of the lowest jobless rates in the nation...must be doing something right here.  Perhaps its the lower cost of living? Maybe...Perhaps it's the slightly higher sales tax (8.25%)-could be...I think it might be the no state income tax...ding ding ding, we have a winner.