Investeens

It’s no surprise that New York has had its fair share of budgetary issues over the past few years.  Unfortunately for New Yorkers, the end to these issues will not be coming in the near future.  According to The Wall Street Journal on October 8, 2011, Governor Andrew Cuomo warned New Yorkers that another “tough budget is coming up, with at least a $2 billion deficit.”

On Friday August 6, Standard & Poor’s announced that it had downgraded the U.S. credit rating from the highest, AAA, to AA+, for the first time in history. The immediate effects of the downgrade were seen on Wall Street as the Dow Jones 30 index plummeted in excess of 600 points. However, now S&P analysts are saying the federal budget situation can start to affect your street: State and local governments.

California is starting to make what some call a rebound.  The revenue is now $6.6 billion higher than forecasted through the 2012 fiscal year.  Not only is this news a good sign for the country as a whole, as it shows that the state with the lowest credit rating from Standard & Poor's is possibly on the up swing, but it also comes as good news to Californians as a raise in taxes will be trimmed.

As reported by the Wall Street Journal, state and local tax revenue is now back up to levels that collections were at years ago.  This gain has been credited to the now "recovering" economy as well as the various tax increases that occurred during the recession.