California and
Nevada are suffering from severe under-employment. The states are struggling not only to employee thousands out of work, but many who have part-time jobs are looking for full-time jobs and more working hours that are currently unavailable. The average unemployment rate from July 2011 to June 2012 for California is 11.2%, but its under-employment rate is far greater at 20.3%. The same holds true in Nevada with an average unemployment rate of 12.3% and under-employment rate of 22.1%. Manystates have experienced improvements in declining under-employment, but for a big economy like California, accounting for about 13% of U.S. GDP, there is still a ways to go to improve hiring.
Virginia posted its third straight monthly budget surplus for the fiscal year. This year’s savings total $130 million from revenue growth and savings in state government. Governor Robert F. McDonnell state, “Virginia continues to demonstrate that conservative fiscal management, a focus on government efficiency, and bipartisan efforts to bolster our economic development and job creation.
San Bernadino, California officially filed for bankruptcy on August 1st, just two weeks after declaring a $45.8 million shortfall in the city’s budget leaving them unable to make summer payroll. Chapter 9 bankruptcy will protect the city from lawsuits from their creditors while they find a way to reduce spending by 30% of the current budget.
Michigan will begin a new initiative to demolish thousands of vacant and abandoned homes in Detroit. The city lost a quarter of its population between 2000 and 2010 and has an estimated 40,000 vacant structures. The Governor plans to use an estimated $10 million of the $97 million payout from the national mortgage fraud settlement for the project. The plan comes after a power-sharing agreement between the state and the city of Detroit in April to prevent bankruptcy and help turn the city’s economy around.
http://www.bankruptingamerica.org/state-news-roundup-78/
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