The bipartisan budget omnibus, which faces significant political hurdles, would raise income taxes by a third, borrow $7 billion to winnow down a record-setting pile of unpaid bills and open Chicago for the first time to legalized casino gambling.
San Diego county and city pension funds have nearly $7 billion less in the bank than they need to cover benefits already earned by current and former employees, a deficit that’s risen 90 percent in just two years, new reports show.
The state is facing a $3.5 billion deficit, and Governor Cuomo wants to add a billion dollars to the state’s public schools. He also wants to offer free tuition at public colleges for families making under $125,000 a year. He says continuing the tax surcharge is the simplest way to finance all that. “Frankly we don’t have the resources to lose the millionaires’ revenue now,” Cuomo said.
But to summarize, according to independent budget experts Richard Dye and David Merriman at the University of Illinois’ Institute of Government and Public Affairs:
Illinois will have a $13 billion budget deficit by the end of the fiscal year in June.
It will have $14 billion deficits for the next five years before jumping dramatically to $23 billion by 2027
It has $10 billion in overdue bills and $174 billion in pension and health care debt for public workers.
With $70 billion in bond debt, crippling out-migration and high unemployment, Puerto Rico is in the midst of a financial crisis that has led it to seek concessions from creditors. Last week, departing Treasury Secretary Jacob Lew warned that Puerto Rico may be unable to renew contracts with health care providers without financial relief before April.
A $90 billion wave of maturing commercial mortgages, leftover debt from the 2007 lending boom, is laying bare the weak links in the U.S. real estate market. It’s getting harder for landlords who rely on borrowed cash to find new loans to pay off the old ones, leading to forecasts for higher delinquencies.
After seven years of fitful declines, the federal budget deficit is projected to begin swelling again this decade, adding $8.6 trillion to the federal debt over the next 10 years, according to projections from the nonpartisan Congressional Budget Office that reveal the strain that the government’s debt will have on the economy as President Trump embarks on plans to slash taxes and ramp up spending.
The country’s forex reserves have shrunk by almost a $1 trillion since June 2014 as the central bank has sought to prevent a large fall in the yuan against the U.S. dollar.
Vanguard Group says the euro zone’s sluggish economy, where policy makers are barely halfway to reaching their inflation target, means monetary easing will persist, and sub-zero bond yields with it. Deutsche Asset Management predicts rates on benchmark German two-year notes will climb about 0.2 percentage point in 2017 — just twice the advance in the past month and keeping them well below the zero threshold.
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