CBO Recommendation to Munis - Default!
Bruce Krasting submits:You hear a lot about the states that are facing a financial wall. California, New York and Illinois are on top of the list. But that is a 2010 story. The 2011 story will shift toward the nation's municipalities. There are 36,000 cities, towns, villages and boroughs across the land. They all are facing problems. This chart from the CBO (pdf link) describes the problem: (Click charts to enlarge) As you can see the local munis get the lion's share of their revenue from three sources; direct payments from the State (30%), local property taxes (26%) and other revenues (22%). A total of nearly 80% of the muni revenue stream is now suspect.Complete Story »