Cities And States May Throw A Wrench Into The Recovery

Economists who are forecasting a ro bust recovery in the months ahead might do well to ponder the parlous fiscal condition of U. S. states and cities. Recent surveys show that 28 states and over half of the nation's cities are spending more than they take in. These include such headline-grabbers as California, which is facing a $ 13 billion in budget shortfalls, and New York State and New York City, which are attempting to close projected budget gaps of $6 billion and $ 3 billlion, respectively.

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