State after State in US in DEEP RED – NJ and Kansas join NY and CA

Ok, guys its not to do with Valentine anymore.. its about cash…

After California and New York – it is the turn of two other states to be in financial mess: Kansas and New Jersey.

Garden State, NJ has now increased its projected deficit by a some…  71% from the projection a month back – a budget shortfall for the current fiscal year of $3.6 billion from a projection of $2.1 billion a month ago.[1]  What a difference a month MAKES!  Governor Jon Corzine to call for unpaid days off and for “substantial adjustments to the state budget” – which invariably means job cuts and holding off on tax refunds…..

…. and is the case for Kansas!  But Kansas’ problem is also about the political clash – the Democrats and Republicans are not clear as to how to solve the Cash Flow problem.  So Paychecks and Tax refunds will get delayed…. and even payments to medicaid providers and schools may get affected!  Not so soothing remarks from the head of budgeting in the state:[2]

“We are out of cash, in essence,” state budget director Duane Goossen said.

Surely, everyone loves to get to the “essence” of things!  And one is to ask the question to this Budgeting Ninja – WTF were you smoking all these months??  Surely, just the liquidity crisis has not created this!!  It is a basic question of what you have and where it goes… and it didn’t happen overnight.  Just that it got exposed now!

Reference Links:

1. New Jersey’s Budget Shortfall Widens to $3.6 Billion
2. Kansas may delay tax refunds, paychecks