US state budget crises threaten social fabric

From the FINANCIAL TIMES:

States around the US are cutting costs wherever possible as they prepare budgets for the fiscal year that starts this week for most of them. Their combined deficit is projected to reach $112bn by June 2011.

Local government activities, such as funding police, school buildings, fire departments, parks and social programmes, are in the line of fire.

“We are where the rubber meets the road,” said Sam Olivito of the California Contract Cities Association, which represents cities that outsource public services. “Local government is the fabric of our nation – it’s what keeps everything working properly.”…

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