Arizona Government Issuing IOUs, Weeks From Going Belly Up
How will Arizona handle this?
This just in- the coffers of the State of Arizona are empty and they’ll be paying in the form of IOUs.
“Over 60% of our state budget is locked down by those voter mandates,” State Representative Vic Williams told KOLD News, and those funds cannot be touched.
Legislators have been unable to resolve the budget crisis, leaving the state to pay with IOUs not only government employees but those that rely on the government like child care centers. Officials state they are working with banks in recognizing the IOUs, but that’s nothing more than a band-aid on a gaping wound.
What’s next for the State? Legislators will have to come together and agree on the way forward, taxes will probably have to go up despite the skyrocketing foreclosure market in pockets of the state, and budgets will have to be slashed (and managed better than they have been in the past).
Is Arizona the first in line to issue IOUs? Will other struggling states come up against voter mandated funds that drain the State’s bank account? How have they and how will others handle this situation as they come up against it? Despite the origination point of the problem, this crisis has a great impact on those that live in the State.
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This article published on Monday, January 4th, 2010 at 12:37 am | Contact the editor
Topics: News
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AGBeat Editor-in-Chief: Lani, named one of Real Estate’s 100 Most Influential, as well as 12 Most Influential Women in Real Estate, is a business writer hailing from the great state of Texas in the city of Austin. As a digital native, Lani is immersed not only in advanced technologies and new media, but is also a stats nerd often burried in piles of reports. Lani is a proven leader, thoughtful speaker, and vested partner at AGBeat.
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- AgentGenius:
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- Real Estate Feeds:
Arizona Government Issuing IOUs, Weeks From Going Belly Up: How will Arizona handle this?
This just in- the coffers… http://bit.ly/5WPDfk - Real Estate Ninja:
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- AgentGenius:
#agnow What is the impact it will have on Arizona state residents? Cut government programs, etc.? http://bit.ly/8aXmT9
- AgentGenius:
#agnow [...] Read more here: Arizona Government Issuing IOUs, Weeks From Going Belly Up [...] http://bit.ly/8aXmT9
- AgentGenius:
#agnow Hmmmmm. Go figure that financial instability and runaway spending would come from John McCains favorite red… http://bit.ly/8aXmT9
- AgentGenius:
#agnow For all practical purposes in an industrial economy, energy is money. We passed the world oil peak nearly fi… http://bit.ly/8aXmT9
Benn Rosales
Conal Campbell
Elijah May
Lani Rosales
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Charlene Jimenez
What is the impact it will have on Arizona state residents? Cut government programs, etc.?
Hmmmmm. Go figure that financial instability and runaway spending would come from John McCains favorite red state. -Tyler
For all practical purposes in an industrial economy, energy is money. We passed the world oil peak nearly five years ago, so we’re on the downhill of energy (hence, money). All energy is derived from oil, so we’re headed for the post-industrial Stone Age.
Instead of making other arrangements, politicians and the media told us we could have infinite growth on a finite planet. And, silly us, we believed them.
Arizona might be the first state to need a bailout from the feds, but it won’t be the last. Hyperinflation will precede the Stone Age, but not by much.