President Obama unveiled a $3.8 trillion budget request Monday that hikes taxes on the rich, spends new money on infrastructure and education, but does little to reform the entitlement programs that pose the biggest long-term threat to the federal budget.
The California Supreme Court handed Gov. Jerry Brown a victory Thursday by ruling the state legislature had the authority to eliminate more than 400 redevelopment agencies funded with property tax dollars.
Indiana's state government has discovered $320 million in funds it didn't know it had, money that officials stumbled across while enacting statewide belt-tightening measures.
In one of the most contentious exchanges among the candidates at Tuesday night's GOP presidential debate in Las Vegas, former Senator Rick Santorum lashed out at former Governor Mitt Romney's Massachusetts health care reform program as a budget-busting model for the Obama administration's health care plan. Romney insisted he never suggested it should be a model for the rest of the country, and maintained it remains popular in his home state.
Just when states thought their tax revenues were finally on the mend...
Faced with a state budget crisis, the University of California system on Thursday began examining a possible tuition increase up to 16% in fall 2012 and continuing that increase over the following three years, nearly doubling tuition, if state funding is flat.
California State University said Tuesday that it will raise tuition at its 23 campuses by another 12% this fall, thanks to a deeper-than-expected $650 million cut in state funding.
Both chambers of the Democrat-controlled California legislature are scheduled to vote Tuesday afternoon on a budget deal to reduce the state's staggering $26 billion deficit to $5 billion, officials said.
First the good news: State and local tax revenues climbed 4.7% in the first quarter, fueled by a surge in personal income taxes.
Conceding defeat on his tax extension proposal, California Governor Jerry Brown unveiled a budget Monday that imposes deep spending cuts.
The streetlights are on. The parks are being watered and weeded. The buses are running on Saturdays.
California Governor Jerry Brown vetoed Thursday the budget passed by state lawmakers the day before that relied on spending cuts, fund transfers and one-time revenue boosts.
The tornados, floods and wildfires that have swept across the United States are also wreaking havoc on state budgets.
Time is running out for Minnesota's parks and highway rest stops, not to mention 36,000 state employees.
California lawmakers passed a balanced budget Wednesday that relies on spending cuts, fund transfers and one-time revenue boosts, but allows them to keep collecting their paychecks.
California lawmakers unveiled a balanced budget Tuesday that cuts billions from education but likely allows them to keep collecting their paychecks.
States are gearing up to spend nearly 19% more of their money on Medicaid as enrollment rises and federal stimulus funds dry up.
State budgets have taken a beating since the recession began. But guess what their latest problem is? Too much money.
California Governor Jerry Brown unveiled a revised budget Monday that calls for a $9.3 billion tax extension, coupled with a $2.6 billion cut in spending.
California is enjoying an unexpected $2.5 billion spike in tax revenue, which could help the state close its massive budget shortfall.
Keep paying higher taxes or face deep, painful cuts in services. Those are the options Californians are faced with.
Both the House and Senate OK the budget bill. The president is expected to sign the bill shortly.
CNN's Dana Bash looks at the proposed budget cuts, and what both sides eventually agreed upon.
Protesters upset over state budget cuts fill the Washington state Capitol.
Illinois recently passed a budget that ticked off a lot of business people because it raised taxes on companies and individuals.
Fulfilling his promise not to raise taxes, Ohio Gov. John Kasich Tuesday unveiled a budget that slashes spending for many agencies and seeks to privatize certain government functions to eliminate an $8 billion budget deficit.
Calling the state's fiscal problems unprecedented, Pennsylvania Gov. Tom Corbett unveiled Tuesday a budget that asks state employees to forgo pay increases and pay more for their health care.
Wisconsin Gov. Scott Walker calls a request to meet Democratic senators near the Wisconsin-Illinois border "ridiculous."
Wisconsin Gov. Scott Walker on Monday dismissed as "ridiculous" a letter from a Democratic state Senate leader who suggested a meeting "near the Wisconsin-Illinois border" to discuss the state's budget impasse.
New Jersey Governor Chris Christie introduced a $29.4 billion budget Tuesday that demands many concessions from state workers, as well as cuts spending and taxes.
Protestors continue to demonstrate against Gov. Scott Walker's proposed budget cuts in Madison, Wisconsin.
For about a week, tens of thousands of men, women and children have been gathering at the State Capitol in Madison, Wisconsin, protesting Gov. Scott Walker's "budget repair" bill. Besides requiring sharp increases in employee contributions to pension and health insurance benefits, the bill strips most of the state's public sector unions of almost all their collective bargaining rights.
Facing an enormous budget shortfall, Connecticut's governor is proposing hiking taxes on everything from incomes to cigarettes to pedicures.
Jessica Yellin asks Sen. Rob Portman about the Republican pledge to slash $61 billion dollars from the 2011 budget plan.
Students at the University at Albany might have to say goodbye to the theater program. And in Reno, the University of Nevada's German studies program will soon be history.
House Republicans hammered President Obama's 2012 proposed budget on Tuesday, telling Treasury Secretary Tim Geithner that tax increases included in the plan are unacceptable.
Critics take on Obama's 2012 budget. CNN's Jim Acosta reports.
Not every state that took a body blow from the recession is staring into the abyss of a budget crisis.
Taking an unusual tack to dealing with a $3.6 billion budget deficit, Florida Gov. Rick Scott unveiled a budget Monday that cuts $4 billion in property and corporate income taxes.
Funding to New York's schools and Medicaid program would get slashed under a $132.9 billion budget unveiled by newly installed Gov. Andrew Cuomo Tuesday.
Massachusetts is bracing for the biggest budget cuts in 20 years...even as its tax revenues are on the rise.
Texas lawmakers unveiled a Spartan budget late Tuesday night that slashes $31 billion in spending to close the state's massive budget deficit. Education, Medicaid and corrections would be hit particularly hard.
The nation's battered state governments face a collective $41 billion budget gap next fiscal year, a survey released Wednesday found.
California Gov. Jerry Brown unveiled Monday a draconian budget plan that would slash $12.5 billion in spending and extend $12 billion in tax hikes.
Illinois lawmakers on Wednesday approved major personal and corporate income tax hikes to bring the state's budget back from the financial abyss.
Democratic state lawmakers in Illinois are scrambling to pass massive personal and corporate income tax hikes Tuesday to bring their state budget back from the fiscal abyss.
In May, Gov. Arnold Schwarzenegger discussed plans for California's budget.
Voters on Tuesday were at the center of a high-stakes tug-of-war between lawmakers and anti-tax advocates.
Cash-strapped California would get some relief by legalizing pot, but the biggest boost would be thanks to massive law enforcement cuts, not new tax revenue, experts say.
The housing crisis is finally catching up with cities -- and the impact isn't going to be pretty.
State legislatures will be in a high-stakes tug-of-war with both voters and industry at the ballot box this November.
Alabama schools have been having a rough time of it, and it only looks like it's going to get rougher. The Cotton State recently came in last place in the federal Department of Education's Race to the Top grant competition. And a steadfast global recession combined with the Gulf Coast oil spill this summer have put a severe strain on the state's tax receipts, the primary source of revenue for Alabama's education system, forcing several school systems to take out private loans just to make it through the year.
Most states were forced to slash expenses to end the year with a balanced budget, but severe cuts and better-than-expected revenue collections allowed a few lucky states to welcome surprise surpluses.
State and local governments are facing a vicious cycle thanks to our financial crisis. Since home prices haven't really recovered, tax revenues are down. Since tax revenues are down, governments are cutting jobs, which means cutting services to homeowners. That means governments are spending less money in their communities, and employing less people, perpetuating the decline in property values that caused tax revenues to decrease in the first place.
A judge on Friday ruled against California Gov. Arnold Schwarzenegger's request to force the state controller to cut 200,000 state employees' pay to minimum wage temporarily.
Back in 1965, The Mamas & the Papas reached the top of the charts with "California Dreamin'," a song pining for a return to the warm safety of their home state. But these days they'd be better off dreaming about Texas.
After nearly two years of seeing their tax revenues plummet, states are finally getting a little good news.
A year ago, California dealt with its budget crisis by handing out hundreds of thousands of IOUs to contractors and taxpayers. This year, it's threatening to cut state workers' wages to the bone.
As many as 200,000 state workers in California could see their pay scale slashed to minimum wage, if orders from the governor's office are followed.
California's legislature is exploring the feasibility of electronic license plates with digital ads, a move that its leading proponent says could add jobs and help in combating the state's budget crisis.
Governors and state lawmakers are anxiously waiting to see whether Congress will send them another $24 billion to help cover their ever-expanding Medicaid rolls.
The good news is that states are expected to hit the bottom of their budget woes this coming fiscal year.
Think states have made deep spending cuts? You ain't seen nothing yet.
Tax revenue at the state and local levels grew for the first time in the past five quarters, according to government data released on Tuesday.
Another big employer is hanging out the "Not Hiring" sign.
New York State Comptroller Thomas DiNapoli said Tuesday that Wall Street bonuses jumped 17% last year, to an estimated $20.3 billion, as profits in the financial services sector rebounded.
The weirdest campaign ad of this season -- maybe any season -- debuted on the Internet this past week. The ad has been nicknamed, "Demon Sheep," and can be viewed here.
California is hurtling into the budgetary abyss -- and it's not alone.
In another ominous sign for state budgets nationwide, state and local governments reported another drop in overall tax revenue on Tuesday.
While the national economic picture is starting to brighten, the states are still suffering their worst budget crises in decades, a new report found.
State tax collections nationwide plummeted in the third quarter, and the forecast for the remainder of the year looks grim, a report released Monday shows.
The world's eighth largest economy is on the verge of issuing IOUs.
Recession-weary Americans aren't gambling the way they used to -- and that could be a problem for many U.S. states already struggling with record budget gaps due to the weak economy.
Hard times are hitting the people of Philadelphia, one way or another.
California sent out its last IOU on Thursday. The "lucky" recipient: Yellow Cab Co. of Sacramento, the oldest and largest taxi company in California's capital city.
Rhode Island will be open for business Friday.
More than nine out of 10 cities are slashing spending this year as the recession wreaks havoc on their sales and income tax revenue, a new study found.
In Pennsylvania, day care centers are closing. Food banks and libraries are cutting back. A school district is taking out a multi-million dollar loan.
California will have enough cash to stop issuing IOUs on Sept. 4, almost one month earlier than expected, the state controller said Thursday. That's also the date when people and companies can redeem their IOUs with the state treasurer.
California may have a budget, but that doesn't mean it has the money to cash the $1.1 billion in IOUs sent out this month.
The bad news about state budgets just keeps getting worse. Only three weeks into the new fiscal year, gaps are already opening up. And the shortfalls are only expected to grow.
Gov. Arnold Schwarzenegger posted a video on Twitter showing him waving a huge knife.
California's Gov. Arnold Schwarzenegger ruffled feathers this week by posting a video on Twitter, in which he brandishes a large knife while talking about the state's recent budget cuts.
Pennsylvania state workers' paychecks are a little light these days.
The federal budget deficit increased in June as spending surged and tax receipts sunk, pushing the total budget shortfall to over $1 trillion in the first 9 months of the fiscal year, according to a government report released Monday.
As if struggling to stay afloat during a faltering economy isn't difficult enough, hundreds of small business vendors that rely on contracts with California are facing another hurdle: There's a good chance the state won't be paying any of their invoices this month.
Californians have fewer places to redeem IOUs issued by the cash-strapped state.
Here come the California IOUs, again.
It's not a happy new year for the states.
Unless lawmakers agree on how to close the budget gap, California Gov. Arnold Schwarzenegger says he refuses to borrow money to keep the state running in the face of a $24.3 billion budget deficit and a new fiscal year on the horizon.
States are poised to pass as much as $24 billion in tax and fee hikes in coming weeks, as they struggle to balance their budgets amid the worst economic downturn since the Great Depression, a report released Thursday found.
The downfall of the American auto industry is wreaking havoc on state and local budgets from coast to coast.
Note to Californians: Get ready for larger class sizes, fewer police patrolling the streets and more public offices shuttered on weekdays.
Facing mounting budget deficits and seeing few areas left to cut spending, states increasingly are turning to the only option they have left: raising taxes.
The Obama administration, issuing its first progress report on the $787 billion stimulus program, said Wednesday that $88 billion has been made available and that it's ahead of schedule in implementing most initiatives.
As cities and states wonder whether their starved pension funds will dry up and force them to use budget money to pay the annual cost, retiree health care benefits are already draining state coffers.
State officials nationwide are wrestling with yet another round of budget shortfalls, this time due to plummeting April income tax revenues.
© 2013 Cable News Network. Turner Broadcasting System, Inc. All Rights Reserved.
|