Tuesday, January 19, 2010

Six Things Policymakers Should Watch to Avoid Becoming the Next California.

In an interesting analysis reported by, a new methodology developed by Pew looks at two questions: How did California get into its current fiscal situation, and could other states find themselves facing similar difficulties? The methodology examined six key areas:
  1. Change in revenue
  2. Budget gap as a percentage of general funds
  3. Change in unemployment
  4. Foreclosure rate
  5. A supermajority requirement to raise revenue and ratify budgets
  6. The “money” grade from the Pew Center on the State’s Government Performance Project, which assesses how well states are managing their fiscal affairs

Based on this research, nine states are currently at risk of following in California's path. Policymakers should look at policies to address employment and foreclosures to point their state in the right direction.

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