A new Pew Center study says that as many as 10 states face financial disaster similar to the massive problems faced by California.
Pew identified Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin as the states in the edge of disaster. Including California, the 10 states account for more than one-third of America’s population and economic output, according to the report.
Budget problems within the states might result in higher taxes, layoffs of government employees and fewer services in coming years, Pew warned. Double-digit budget gaps, high unemployment and home foreclosure rates and budget constraints are the key reasons for the calamity, Pew said.