More Spending Cuts Might Be In Store for States and Localities

Link to June 26 New York Times article, "Federal Aid States Were Counting On May Be Lost After Jobs Bill Stalls".

Excerpt: Financially struggling states, already facing record budget shortfalls, are now confronting the possibility of losing out on billions of dollars in federal aid that they had been counting on, if Congress does not revive a jobs bill that stalled in the Senate this week.

The result, governors and state budget officers are warning, could be hundreds of thousands of layoffs at the state and local levels, as well as draconian spending cuts.

“It’s a bloodletting,” said Gov. Edward G. Rendell of Pennsylvania, a Democrat.