States in Trouble (Daily Beast)

50 States in Debt

#1, Rhode Island
Debt 2009: $9.2 billion
Projected 2012 Budget Shortfall: $290 million
GDP 2009: $47.8 billion
Debt/GDP Ratio: 19.19%
Unfunded Pension Liabilities: $4.4 billion (39%)
Unfunded Health Care & Other Liabilities: $788 million (100%)

On the chopping block: Rhode Island’s judges and court workers are trudging along despite a lack of funds cutting paid work days per week and 53 positions that remain unfilled. “This is not a time for expensive initiatives and hefty new capital projects. It is a time to do the very best with the limited resources we have,” said Chief Justice Paul A. Suttell. The states court system has responded to budget shortfalls in part by disposing of cases on backlog.

#4, Illinois


Debt 2009: $57.0 billion
Projected 2012 Budget Shortfall: $15.0 billion
GDP 2009: $630.4 billion
Debt/GDP Ratio: 9.04%
Unfunded Pension Liabilities: $54.4 billion (46%)
Unfunded Health Care & Other Liabilities: $39.9 billion (100%)

On the chopping block: The state's mental-health services will lose $91 million in funding during the next fiscal year as a result of Illinois' extreme budget gap. Illinois Human Services chief Michelle Saddler has expressed her worry over the effect of the large cut, saying, "I'm concerned that we will see a real public-health crisis and real public-safety crisis with these cuts."




#6, New Jersey


Debt 2009: $56.9 billion
Projected 2012 Budget Shortfall: $10.5 billion
GDP 2009: $483 billion
Debt/GDP Ratio: 11.78%
Unfunded Pension Liabilities: $34.4 billion (27%)
Unfunded Health Care & Other Liabilities: $69 billion (100%)

On the chopping block: One of the biggest losers will likely be school districts, which are slated to have their funding decreased by $820 million. With $268 million coming in federal aid, 4,000 teachers may be able to keep their jobs. “Public opinion may well shift a bit when school is back in session, once parents start seeing the effects,” said Ben Dworkin of the Rebovich Institute for New Jersey Politics.

#23, New York


Debt 2009: $122.7 billion
Projected 2012 Budget Shortfall: $9.0 billion
GDP 2009: $1.1 trillion
Debt/GDP Ratio: 11.22%
Unfunded Pension Liabilities: $0
Unfunded Health Care & Other Liabilities: $56.3 billion (100%)

On the chopping block: With the threat of a shut down in Albany and the state’s finances verging on desperate, the state legislature finally passed a budget in early August. The state's public schools may also be nearing desperation, as the cuts proposed by Governor David Paterson include chopping $1.1 billion for state aid to schools.




#28, Nevada


Debt 2009: $4.4 billion
Projected 2012 Budget Shortfall: $1.5 billion
GDP 2009: $126.5 billion
Debt/GDP Ratio: 3.51%
Unfunded Pension Liabilities: $7.3 billion (24%)
Unfunded Health Care & Other Liabilities: $2.2 billion (100%)

On the chopping block: The Governor Guinn Millenium Scholarship program, which provides up to $10,000 toward college tuition for high school seniors, lost $12.6 million in funding last year as Nevada legislators closed the state's budget gap for the current fiscal cycle.





#40, Virginia


Debt 2009: $24.3 billion
Projected 2012 Budget Shortfall*: $2.3 billion
GDP 2009: $408.4 billion
Debt/GDP Ratio: 5.95%
Unfunded Pension Liabilities: $10.7 billion (16%)
Unfunded Health Care & Other Liabilities: $2.6 billion (66%)

On the chopping block: Health Care. New federal money will soften the blow of the loss of health coverage for low income Virginians, but the $293 million the state received is still $100 million less than lawmakers were banking on.

*Virginia operates with a 2-year budget.



#41, Florida

Debt 2009: $38.9 billion
Projected 2012 Budget Shortfall: $3.6 billion
GDP 2009: $737.0 billion
Debt/GDP Ratio: 5.28%
Unfunded Pension Liabilities: -$1.8 billion (-1%)
Unfunded Health Care & Other Liabilities: $3.1 billion (100%)

On the chopping block: The judicial system. Staff have been relieved, basic maintenance has been cut, programs for drug offenders have been reduced, and one Tampa courthouse is infested with vermin. All that hasn’t stopped the 1st District Court of Appeal in Tallahassee which is building a $48 million courthouse complete with 60-inch LCD flat screens for each judge.





#48, Texas


Debt 2009: $30.4 billion
Projected 2012 Budget Shortfall: $13.4 billion
GDP 2009: $1.1 trillion
Debt/GDP Ratio: 2.66%
Unfunded Pension Liabilities: $13.8 billion (9%)
Unfunded Health Care & Other Liabilities: $28.6 billion (98%)

On the chopping block: Texas has one of the better debt-to-gdp ratios at the moment, but its legislature is still having trouble coming up with the cash for the next two years of operating expenses. That could mean unpaid furloughs, salary freezes and four-day work weeks for state employees. "There's not any fat left," said Andy Homer of the Texas Public Employees Association. "This is cutting to the bone."



#50, Nebraska


Debt 2009: $2.5 billion
Projected 2012 Budget Shortfall: $314 million
GDP 2009: $86.4 billion
Debt/GDP Ratio: 2.91%
Unfunded Pension Liabilities: $755 million (8%)
Unfunded Health Care & Other Liabilities: n/a

On the chopping block: Students are going to have to pony up more money for tuition at all University of Nebraska campuses, according to a budget proposal released by president J.B. Milliken. With less money coming from the state, "I'm concerned about the investment in education," Milliken said.