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States Grapple With Unique Difficulties in Economic Downturn

As the impact of the economic downturn ripples across the U.S., four public broadcasting reporters describe how the recession has impacted their states and local communities.

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  • JEFFREY BROWN:

    The Labor Department reported today that all 50 states saw rises in their unemployment rates last month. Eight of them had jumps of more than a full percentage point, and two — Michigan and Rhode Island — have now hit double digits, more than 10 percent unemployment.

    All this as the stimulus plan is debated here in Washington, with money for the states — potentially a lot of it — on the table.

    We talk about all this now with public broadcasting journalists covering their states: Helen Ferre, the host of WPBT's series "Issues" in Miami, Florida; Julie Philipp is managing editor of WXXI-TV in Rochester, New York; Federica Freyberg, reporter and anchor for Wisconsin Public Television; and John Myers, Sacramento, California, bureau chief for KQED Public Radio.

    Well, Helen Ferre, I want to start with you. I understand your state legislature just held a special session on its budget problems. Tell us how the economic crisis is hitting programs and services there.

  • HELEN FERRE, WPBT Host:

    Well, I would say that, as most states go, everything is being greatly affected by the downturn in the economy. Florida has a $2.3 billion budget shortfall, which was just taken care of and addressed in a special legislative session.

    Republican Gov. Charlie Crist has indicated that he might be vetoing some of these cuts, particularly in the area of education, which has been one of the hardest hit.

    But, of course, that's not the only area that's been hit. You also have the hit in health care and Medicaid recipients are going down. Even affordable housing money that was being allocated has also been cut.

    So you really see a dire need for a stimulus package coming from Washington. The state's certainly hopeful for it. But it's all about job creation; that's what most people are hoping for.

  • JEFFREY BROWN:

    All right, let me go to Federica Freyberg in Madison, Wisconsin. How hard, how fast are you feeling it there?

  • FEDERICA FREYBERG, Wisconsin Public Television:

    Well, it's really starting to hit now. And we're told by experts, economic experts that we have not hit bottom yet.

    The state of Wisconsin faces a budget deficit over the next two years of $5.4 billion. Now, this is a result of lowered projected tax revenues, most notably sales tax and corporate taxes.

    Now, our governor does not submit his budget or his budget fixes until February, and so we're all kind of just waiting for the other shoe to drop to determine exactly what this kind of deficit means. Our governor has told us that it will mean deep cuts. It has already meant that he will not be replacing 3,500 state workers whose jobs are now vacant.

    We also are looking toward any federal stimulus money to help us here in the state of Wisconsin with this. Our Gov. Doyle has said that he has concerns about maintaining essential services, like police officers and fire departments, but he says that he will do everything possible to protect education, health care, and alternative or renewable energy.