Today's Wall Street Journal Story, "Even state capitals feel the squeeze," contains data or quotes from Harrisburg, Lansing, Topeka, Sacramento, Springfield and Boston and this summary quote:
"The presence of the state capital has for many years contributed to a recession-resistance factor aligned with more stable employment," said Richard A. Ciccarone, chief research officer at McDonnell Investment Management in Oak Brook, Ill.
However, he added, "that advantage is under pressure as state government cutbacks are becoming more aggressive."
The fall in state and local tax receipts last year was the most severe since at least 1947, according to a recent paper from the San Francisco Federal Reserve Bank; it added that "fiscal conditions are likely to get worse before they get better."
Photo credit: Associated Press in the Wall Street Journal.
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