Sit about to hit the fan???
Gov. Phil Bredesen said Wednesday that state tax collections have been "deteriorating dramatically" in recent months, and it will be necessary to make another $468 million in budget cuts.
He said that will necessitate cutting 5 percent of state jobs - or 2,011.
Gov. Bredesen said he hopes to have the cuts made on a voluntary basis - with cash payouts used as a retirement incentive.
At a news conference in Nashville, he said April tax collections showed the largest drop since records began to be kept in 1961.
He said the first quarter was the third worst on record, and the second quarter "is certainly shaping up to be worse than that."
Tennesee was not a bubble state. It did not benefit from skyrocketing house prices nor consequent property taxes. Now state revenues are evaporating. AND THINGS ARE GETTING WORSE!!!!!
This is not a subprime issue. This is not just a housing issue(although housing is a big culprit). This is an issue where an economy became addicted to the CREATION of credit and is now being cut off cold turkey. Housing simply is the most visible because it is most directly credit dependent.
You think I was crazy when I was predicting 10% umemployment by the end of the summer. 10% will likely be conservative. Cities going bankrupt, states running out of money, counties on the brink of financial collapse. This is not a prediction, it is current reality.
Companies laying off workers 10% at a time. And not just in one industry, medical, technology, finance, and transportation and more.
I know its getting warm out there, but we will work through it. Just sit in front of the fan and cool off....but please wear a rain coat and face mask if you don't want to get sprayed with bull nonsense.