Pew Center report: 10 states near bankruptcy

A Pew Center report says 10 states are near bankruptcy. They are: Florida, Illinois, Michigan, Arizona, Nevada, New Jersey, Oregon, Rhode Island, California, and Wisconsin.

The Christian Science Monitor summarized the challenges:

• Unbalanced economies. States that depend on a particular industry or two, such as automobiles or home construction, can be at greater risk in recession.

• Budgets out of kilter. The recession puts almost all states in a bind, but California, Illinois, Michigan, New Jersey, Rhode Island, and Wisconsin have a history of persistent shortfalls, the study said.

• Limited ability to act. In Arizona, California, Florida, Nevada and Oregon, the ability to raise taxes or cut spending is limited by their state constitutions, ballot measures passed by voters, or other legal impediments, the Pew researchers found.

• Putting off decisions. The study said that lawmakers "punted" responsibility in California, Illinois, and New Jersey. They passed responsibility to state voters or governors to make tough calls, or used borrowing or accounting methods to put off tough budget decisions.

"Punting" was the speciality of disgraced former Governor Rod Blagojevich of Illinois and his enablers. Remember that in 2010. New Jersey voters already sent their message.

The troubled 10 states comprise one-third of the nation's population.

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