Fate of the States: The New Geography of American Prosperity
Page 20
13. Moody’s Investors Service, 2011 State Debt Medians Report, http://www.governing.com/gov-data/economy-finance/state-debt-per-capita-figures.html; Governing, State Debt per Capita, http://www.governing.com/gov-data/economy-finance/state-debt-per-capita-figures.html.
14. Micki Maynard, “Indiana Gets a $400 Million Infusion from Toyota,” Changing Gears, February 8, 2012, http://www.changinggears.info/2012/02/08/indiana-gets-a-400-million-infusion-from-toyota/.
15. Roxana Hegeman, “Boeing to Close Historic Wichita Plant by End of 2013,” USA Today, January 4, 2012, http://usatoday30.usatoday.com/money/industries/manufacturing/story/2012-01-04/boeing-plant-closing-wichita-kansas/52377688/1.
16. Louise Story, “Lines Blur as Texas Gives Industries a Bonanza,” New York Times, December 2, 2012, http://www.nytimes.com/2012/12/03/us/winners-and-losers-in-texas.html?pagewanted=all.
17. “Globalstar Announces Relocation of Its Corporate Headquarters to Louisiana from California,” Louisiana Economic Development, July 13, 2010, http://www.louisianaeconomicdevelopment.com/led-news/news-releases/globalstar-announces-relocation-of-its-corporate-headquarters-to-louisiana-from-california.aspx.
18. Rick Rothacker, “Chiquita Moving HQ to North Carolina from Ohio,” Reuters, November 29, 2011, http://www.reuters.com/article/2011/11/30/chiquita-hq-idUSN1E7AS1N820111130.
19. Monica Davey, “Questions Persisting as Illinois Raises Taxes,” New York Times, January 12, 2011, http://www.nytimes.com/2011/01/13/us/13illinois.html?.
20. Markos Moulitsas, “Democratic Illinois Economically Outpaces Scott Walker’s Wisconsin,” Daily Kos, April 20, 2012, http://www.dailykos.com/story/2012/04/20/1085039/-Democratic-Illinois-economically-outpaces-Scott-Walker-s-Wisconsin.
21. Mitch Daniels, in conversation with Meredith Whitney, May 18, 2012.
22. U.S. Department of Commerce, U.S. Census Bureau, “State Government Finances: Historical Data: 2010,” http://www.census.gov/govs/state/historical_data_2010.html; U.S. Department of Commerce, U.S. Census Bureau, “State Government Finances: Historical Data: 2006,” http://www.census.gov/govs/state/historical_data_2006.html; Governing, State Debt per Capita, http://www.governing.com/gov-data/economy-finance/state-debt-per-capita-figures.html; Moody’s Investors Service, 2011 State Debt Medians Report, http://www.governing.com/gov-data/economy-finance/state-debt-per-capita-figures.html; Meredith Whitney Advisory Group, “Tragedy of the Commons Third Edition: 2012 Update,” p. 7.
23. Mitch Daniels, in conversation with Meredith Whitney, May 18, 2012.
24. Michelle Celarier, “Home Is Where . . . ,” New York Post, July 27, 2012, http://www.nypost.com/p/news/business/home_is_where_KMF2T2RLPYc2KRvkXHNyyK.
25. Janet Zink, “Gov. Rick Scott on a Mission to Repeal 1,000 State Rules,” Tampa Bay Times, September 5, 2011, http://www.tampabay.com/news/politics/gubernatorial/gov-rick-scott-on-a-mission-to-repeal-1000-state-rules/1189933.
26. Rick Scott, in conversation with Meredith Whitney, August 7, 2012.
27. “Pilot Pen Moving Headquarters to Jacksonville,” Jacksonville Business Journal, September 8, 2008, http://www.bizjournals.com/jacksonville/stories/2008/09/08/daily5.html.
28. Tax Foundation, “State and Local Tax Burdens: All States, One Year, 1977–2010,” http://taxfoundation.org/article/state-and-local-tax-burdens-all-states-one-year-1977-2010, data retrieved from: http://interactive.taxfoundation.org/burdens/burdensdata.php?state=all&mode=all_states_one_year&format=csv.
29. Colin Pope, “Apple to Build $304M Campus, Hire 3,600 in Austin,” Austin Business Journal, March 9, 2012, http://www.bizjournals.com/austin/news/2012/03/09/apple-to-build-304m-campus-hire.html.
30. Jeff Adkins, “eBay Creating 1,000 Jobs in Austin, TX,” BusinessClimate.com, October 10, 2012, http://businessclimate.com/texas-economic-development/ebay-creating-1000-jobs-austin-tx.
31. Tom Gray and Robert Scardamalia, “The Great California Exodus: A Closer Look,” Manhattan Institute for Policy Research, September 2012, http://www.manhattan-institute.org/html/cr_71.htm#.URBBNh3Ac9U.
32. U.S. Department of Commerce, U.S. Census Bureau, Geographical Mobility/Migration: State-to-State Migration Flows, Tables: State-to-State Migration Flows 2005–2009 and 2010,http://www.census.gov/hhes/migration/data/acs/state-to-state.html.
33. Tami Luhby, “California Companies Fleeing the Golden State,” CNNMoney, July 12, 2011, http://money.cnn.com/2011/06/28/news/economy/California_companies/index.htm.
34. J. P. Donlon, “Another Triumph for Texas: Best/Worst States for Business 2012,” Chief Executive, May 2, 2012, http://chiefexecutive.net/best-worst-states-for-business-2012.
35. Sheryl Jean, “Dallas Fed President Richard Fisher: Texas Jobs Have Grown Across All Income Categories, Outpacing U.S. Job Growth,” Dallas Morning News, December 18, 2012, http://bizbeatblog.dallasnews.com/2012/12/dallas-fed-president-richard-fisher-texas-jobs-growing-across-all-income-categories-outpacing-u-s-job-growth.html/.
36. Federal Housing Finance Agency, House Price Indexes, State HPI Comparisons, California and Texas, http://www.fhfa.gov/Default.aspx?Page=215&Type=compare&Area1=CA&Area2=TX&Area3=.
37. Jon Birger, “How Jeffery Boyd Took Priceline from Dot-bomb to Highflier,” CNNMoney, September 11, 2012, http://tech.fortune.cnn.com/2012/09/11/priceline-jeffery-boyd/.
38. Arthur Laffer, interview by Meredith Whitney, June 14, 2012.
39. U.S. Department of Commerce, Bureau of Economic Analysis, Regional Data, GDP and Personal Income, http://www.bea.gov/iTable/iTable.cfm?reqid=70&step=1&isuri=1&acrdn=1#reqid=70&step=10&isuri=1&7007=2011,2007&7093=Levels&7090=70&7035=-1&7036=-1&7001=1200&7002=1&7003=200&7004=NAICS&7005=-1&7006=00000,04000,06000,12000,32000.
40. Campbell Gibson, U.S. Department of Commerce, U.S. Census Bureau, “Population of the 100 Largest Cities and Other Urban Places in the United States: 1790 to 1990,” June 1998, http://www.census.gov/population/www/documentation/twps0027/twps0027.html#citypop.
41. Curt Guyette, “Detroit’s Vision and Revision,” Metrotimes, January 16, 2013, http://metrotimes.com/detroit-s-vision-and-revision-1.1430411.
Chapter 9: David Takes On Goliath: New Political Precedents
1. Catherine Saillant and Tony Perry, “2 Big Cities OK Cuts to Worker Pension Costs,” Los Angeles Times, June 7, 2012, http://articles.latimes.com/2012/jun/07/local/la-me-pensions-20120607.
2. Michael Corkery, “San Jose Voters Back Pension Overhaul,” Wall Street Journal, June 6, 2012, http://online.wsj.com/article/SB10001424052702303918204577449410119033138.html.
3. “Elected Official of the Year,” PublicCEO.com, 2011, http://www.publicceo.com/elected-official-of-the-year/; Ben Tracy, “Calif. City Seeks to Escape Soaring Pension Costs,” CBS News, March 7, 2012, http://www.cbsnews.com/8301-18563_162-57392812/calif-city-seeks-to-escape-soaring-pension-costs/.
4. Floyd Norris, “Orange County’s Bankruptcy: The Overview; Orange County Crisis Jolts Bond Market,” New York Times, December 8, 1994, http://www.nytimes.com/1994/12/08/business/orange-county-s-bankruptcy-the-overview-orange-county-crisis-jolts-bond-market.html.
5. James O’Toole, “Jefferson County, Alabama to File for Largest Municipal Bankruptcy,” CNNMoney, November 9, 2011, http://money.cnn.com/2011/11/09/news/economy/jefferson_county_bankruptcy/index.htm.
6. Mary William Walsh, “In Alabama, a County That Fell Off the Financial Cliff,” New York Times, February 18, 2012, http://www.nytimes.com/2012/02/19/business/jefferson-county-ala-falls-off-the-bankruptcy-cliff.html?pagewanted=all.
7. Stephen C. Fehr, “Alabama’s Largest County Faces Bankruptcy Without State Help,” Stateline, August 22, 2012, http://www.pewstates.org/projects/stateline/headlines/alabamas-largest-county-faces-bankruptcy-without-state-help-8589941276.
8. “NY’s Cuomo Warns Localities Not to Expect State Bailout,” Reuters, September 11, 2012, http://in.reuters.com/article/2012/09/10/usa-newyork-cuomo-idINL1E8KAFRM20120910.
9. U.S. Department of Commerce, U.S. Census Bureau; Federal Housing Finance Agency, House Price
Index, MSA HPI Comparisons, Stockton, CA, http://www.fhfa.gov/Default.aspx?Page=216&Type=compare&Area1=44700&Area2=&Area3=.
10. Steven Malanga, “How Stockton, California Went Broke in Plain Sight,” Wall Street Journal, March 30, 2012, http://online.wsj.com/article/SB10001424052702303404704577309231747497906.html.
11. Sydney Evans, Bohdan Kosenko, and Mike Polyakov, “How Stockton Went Bust: A California City’s Decade of Policies and the Financial Crisis That Followed,” California Common Sense, http://www.recordnet.com/assets/pdf/SR1474619.PDF.
12. Bob Deis, “A Message from the City That Went Bankrupt,” Wall Street Journal, September 27, 2012, http://online.wsj.com/article/SB10000872396390443995604578002200588578188.html.
13. Mary Williams Walsh, “How Plan to Help City Pay Pensions Backfired,” New York Times, September 3, 2012, http://www.nytimes.com/2012/09/04/business/how-a-plan-to-help-stockton-calif-pay-pensions-backfired.html?pagewanted=all; EconStats, “OFHEO House Price Index,” http://www.econstats.com/ofheo/ofheo_q70.htm; “Why Stockton, California is a Sister City to Buffalo, NY,” Get Real Buffalo, March 31, 2012, http://getrealbuffalo.blogspot.com/.
14. Louis Sahagun, “Mammoth Lakes Files for Bankruptcy,” L.A. Now, Los Angeles Times, July 2, 2012, http://latimesblogs.latimes.com/lanow/2012/07/mammoth-lakes-bankruptcy.html.
15. Ryan Hagen, “San Bernardino City Attorney: Evidence of Budget Falsification Given to Other Agencies,” Daily News Los Angeles, July 12, 2012, http://www.dailynews.com/news/ci_21052495/breaking-news-san-bernardino-mayor-morris-addresses-citys.
16. “City Budget Deficit Falls to $300 Million,” CBS Chicago, September 24, 2012, http://chicago.cbslocal.com/2012/09/24/city-budget-deficit-falls-to-300-million/; Kristen A. Graham, “Phila. School Budget Gap Grows by at Least $37M,” Philly.com, July 8, 2012, http://articles.philly.com/2012-07-08/news/32578414_1_tax-collection-plan-property-tax-appeals-delinquent-taxes; Alice Walton, “Los Angeles Maintains Credit Ratings Despite Fiscal Concerns,” 89.3 KPCC Southern California Public Radio, June 18, 2012, http://www.scpr.org/blogs/news/2012/06/18/6673/la-maintains-credit-ratings-despite-concerns/.
17. Institute for Illinois’ Fiscal Sustainability, “What Are the Rhode Island Pension Reforms?” April 19, 2012, http://www.civicfed.org/iifs/blog/what-are-rhode-island-pension-reforms.
Chapter 10: The Way Forward
1. Meredith Whitney and Steve Kroft, 60 Minutes, CBS News, aired on December 19, 2010; James Jacoby, “State Budgets: The Day of Reckoning,” CBS News, December 19, 2010, http://www.cbsnews.com/8301-18560_162-7166220.html?pageNum=4.
2. Robert Slavin, “Muni Defaults Up 111% and Down 38%, Depending on Data,” as quoted in Bond Buyer, April 2, 2012, http://www.bondbuyer.com/issues/121_64/muni-defaults-2012-up-and-down-1038128-1.html.
3. Beth Fouhy, “New Govs Take Office Amid Historic Budget Crisis,” Bloomberg Businessweek, December 20, 2010, http://www.businessweek.com/ap/financialnews/D9K7QCI01.htm.
4. Steven Gray, “Can Drastic Measures Save the Cash-Strapped States?” Time, January 20, 2011, http://www.time.com/time/nation/article/0,8599,2043086,00.html.
5. Judy Lin and Shannon McCaffrey, “State Budgets: Year Ahead Looms as Toughest Yet,” Huffington Post, January 15, 2011, http://www.huffingtonpost.com/2011/01/15/state-budgets-year-ahead-_n_809521.html.
6. William Selway, “U.S. Mayors Say Bond Defaults Likely Amid Strain,” Bloomberg, January 19, 2011, http://www.bloomberg.com/news/2011-01-19/cities-may-default-on-borrowings-amid-financial-strains-u-s-mayors-say.html.
7. Ray Gustini, “Will Jerry Brown’s Budget Save California?” National Journal, January 11, 2011, http://www.nationaljournal.com/dailyfray/will-jerry-brown-s-budget-save-california--20110110?mrefid=site_search.
8. Paul Egan and Steve Neavling, “Detroit’s Debt Crisis Even Worse Than Thought, State’s Review Reveals,” Detroit Free Press, December 22, 2011, http://www.freep.com/article/20111222/NEWS01/112220519/Detroit-s-debt-crisis-even-worse-than-thought-state-s-review-reveals.
9. Jack Lessenberry, “Missing Headline: Detroit Jumps Off Fiscal Cliff,” Dome, December 14, 2012, http://domemagazine.com/lessenberry/jl121412.
10. Michael Corkery, “Muni Blues Worry Investors,” Wall Street Journal, July 25, 2012, http://online.wsj.com/article/SB10000872396390443295404577545362747435078.html.
11. Jon Birger, “Word on Orange County Streets Is No New Sales Tax, Lebenthal Finds (Jim Lebenthal of Lebenthal and Co.),” Bond Buyer, June 26, 1995, http://www.highbeam.com/doc/1G1-17138068.html.
12. U.S. Department of Commerce, Bureau of Economic Analysis, Regional Economic Accounts, GDP and Personal Income Gross Domestic Product by State, http://www.bea.gov/iTable/iTable.cfm?reqid=70&step=1&isuri=1&acrdn=1#reqid=70&step=1&isuri=1.
13. Stanley Reed, “High Energy Costs Plaguing Europe,” New York Times, December 26, 2012, http://www.nytimes.com/2012/12/27/business/energy-environment/27iht-green27.html?_r=0.
14. United States Department of Agriculture, “USDA Agricultural Projections to 2021,” February 2012, http://www.usda.gov/oce/commodity/archive_projections/USDAAgriculturalProjections2021.pdf.
15. Jon Birger, “The Great Corn Gold Rush,” CNNMoney, March 30, 2007, http://money.cnn.com/2007/03/29/magazines/fortune/corn_gold_rush.fortune/index.htm.
16. Federal Housing Finance Agency, “News Release: U.S. House Prices Rose 1.8 Percent from First Quarter to Second Quarter 2012,” news release, August 2012, http://www.fhfa.gov/webfiles/24216/q22012hpi.pdf.
17. Moana Howard, “The Booming Business of Worker Accommodations,” Permian Basin Petroleum Association, August 3, 2012, http://pbog.zacpubs.com/the-booming-business-of-worker-accommodations/.
18. Dan Kraker, “$78M Airport Terminal Opens in Duluth,” MPR News, January 13, 2013, http://minnesota.publicradio.org/display/web/2013/01/12/regional/airpot-terminal-opens-duluth.
19. John Stearns, “Demolition Begins at Site of New Airport Terminal,” Wichita Business Journal, October 9, 2012, http://www.bizjournals.com/wichita/blog/2012/10/demolition-begins-at-site-of-new.html.
20. Linda Cunningham, “Texas’ New P3 Toll Road Project Open to Traffic,” Infra Insight, October, 24, 2012, http://www.infrainsightblog.com/2012/10/articles/tollroadsturnpikesmanaged-lane/texas-new-p3-toll-road-project-open-to-traffic/.
21. Tim Jones, “Bleeding Kansas Shows Peril of GOP Bid to End Income Tax,” Bloomberg, January 24, 2013, http://www.bloomberg.com/news/2013-01-25/kansas-bonds-left-behind-highlight-risks-of-levy-cuts-taxes.html.
22. North Carolina Community College System, “Final Summary Report: JobsNOW: ‘12 in 6’ Project,” September 2011, http://www.aging.unc.edu/programs/readiness/liaisons/2012_0127/documents/JobsNOW%20Report.pdf.
23. National Education Association, “2012 Handbook,” 2012, http://www.nea.org/assets/docs/nea-handbook.pdf.
24. Chuck Reed, in conversation with Meredith Whitney, July 24, 2012.
25. Joel Millman, “Towns Cut Costs by Sending Work Next Door,” Wall Street Journal, July 25, 2012, http://online.wsj.com/article/SB10001424052702303612804577531543876815920.html.
Index
The page numbers in this index refer to the printed version of this book. To find the corresponding locations in the text of this digital version, please use the “search” function on your e-reader. Note that not all terms may be searchable.
Adjustable-rate mortgages (ARMs), 39–41
Greenspan as proponent of, 38–39
types of, 41
Agriculture
boom in central corridor states, 199
U.S. historical view, 20
Alabama
Jefferson County bankruptcy, 65, 187–89
poverty level in, 141
unemployment, 169
Alaska
employment growth, 169
zero state income tax, 165–66
American Dream, components of, 31–32
American Recovery and Reinvestment Act (ARRA) (2011), 67–69, 140, 202
Arizona
home price d
ecline, 47–48
housing boom in, 45–47
population inflow to, 82
poverty level in, 141
privatization of services, 69–70
public safety–related cuts, 131
unemployment, 169
unfunded pension fund, 102
Arkansas, poverty level in, 137, 141
Asset sales. See Privatization
Atlanta, housing bust impacts, 87–88
Automobile industry
boom-and-bust cycle, 23–25
natural gas as fuel, 161
postrecession rise of, 17, 171
Balloon payment loans, 33
Bank of America, 41–42
Bankruptcy. See Municipal bankruptcy
Bear Stearns, 4–5, 47
Bernanke, Ben, on restrictive lending, 49
Bonds. SeeGeneral-obligation bonds; Municipal bonds;Pension-obligation bonds
Boom towns, to ghost town transition, 19–20, 25
California
ARRA money, inappropriate use of, 68
bankrupt municipalities, 60–61, 113–14, 186–87, 189–93
boom-time spending excess, 46, 56, 60–61
consumer credit collapse, 75, 80, 86
consumer debt problem, 74, 80, 83–85
debt per capita in, 162
education cuts, 121–24
home price decline, 47–48, 80, 87, 190
home price escalation, 163, 189
housing boom in, 44–46, 79, 82–83
hydrocarbon reserves, potential for, 158–59
negative business environment, 158–59, 177
negative equity in, 79, 162
population flight from, 9, 27–29, 63–64, 157, 163–64, 168, 177
poverty level in, 141
privatization of services, 69
property-tax capping in, 61–62, 132, 171
public employees, excess payments to, 60–61, 89–91, 105, 132, 189
public safety–related cuts, 129–30, 190
small businesses collapse, 79–80