10 States In Financial Crisis

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In a chilling new report The Pew Center for the States says there are Nine States besides California which are in deep financial crisis.

The other Nine in no particular order are

1. Michigan
2. Rhode Island
3. New Jersey
   
4. Florida
5. Illinois
6. Wisconsin
7. Arizona
8. Nevada
9. Oregon

The Pew Report says together the 10 States account for "more than one-third of the U.S. population and economic output" and  could have "potentially damaging consequences" for the United States economy as a whole.

The report divides the states in those severely hit by the housing bubble -California, Arizona, Nevada, and Fordia, the Midwest states of Wisconsin, Illinois and Michigan, and the Northeaster states of New Jersey and Rhode Island.

Though each state may have it unique problems - housing market crash, manufacturing in decline - the combined impact is troubling according to the Pew Report.

"While California often takes the spotlight, other states are facing hardships just as daunting," said Susan Urahn, managing director of the Washington, D.C.-based Pew center. "Decisions these states make as they try to navigate the recession will play a role in how quickly the entire nation recovers."

The Pew Report does not bill itself as a comprehensive analysis of the total health of states that were studied, rather it is analysis during important times over several fiscal quarters.

"The 10 states are hardly the only ones at risk in this time of record-setting revenue drops, high unemployment and far-flung fallout from the housing bust and credit crisis. Virtually all states have been stressed by the downturn," Urahn said. "We expect that when state lawmakers next spring turn to crafting their new budgets for 2011, many will confront an even tougher set of challenges. States already have made significant cuts, revenues continue to drop, and stimulus funds will be running out. "