THE SYDNEY MORNING HERALD: WASHINGTON: American states are scrambling to mend their battered budgets, with many resorting to so-called ''sin'' taxes and other imposts, while slashing spending, in an attempt to bridge gaping holes inflicted by the recession.
California was set to unveil drastic new measures yesterday, with a spokesman for its Governor, Arnold Schwarzenegger, warning of ''terrible cuts'', as the state seeks to wipe out a $US20 billion ($22 billion) deficit.
But California is not alone. Nearly every one of the 50 US states has been inflicting ''tough love'' on its people in moves that could yet undermine the nation's nascent economic recovery, shown this week by brighter job figures and the first year-on-year drop in monthly home repossessions in five years.
Experts warn that states are approaching a ''cliff'', when money stops flowing from Washington's $US800 billion economic stimulus, leaving those that have not taken measures vulnerable. >>> Simon Mann,, Herald Correspondent | Saturday, May 15, 2010
