Tennesee cutting over 2000 jobs

From The Chattanoogan.com:

Gov. Phil Bredesen said Wednesday that state tax collections have been "deteriorating dramatically" in recent months...... he said April tax collections showed the largest drop since records began to be kept in 1961.He said the first quarter was the third worst on record, and the second quarter "is certainly shaping up to be worse than that."

State's are feeling the squeeze even faster than I had anticipated. Below is a rehash of predictions on state and local govs. The trickle down from this will just add to further trouble in the economy. The downward spiral is picking up steam.

Carl's Financial Predictions:

Government:
1) Local and state governments will see record deficits for the next 2-3 years minimum as they will way overestimate their revenue receipts in their budgets (housing will have a huge impact on revenue).
2) Local and state governments will be forced to make huge cuts in valuable areas (education, social programs).
3) Local and state governments will be forced to make layoffs or furlows.