Another week has gone by and seen more budgets unbalanced, deadlines missed, and shortfalls ignored. Instead of pursuing long term solutions, legislators and governors in our states continue to seek the easy way out. While most of the budget gimmicks being employed push costs into the future, some states are already starting to pay the price of fiscal foolishness.

Tardy States' credit ratings are at Risk as Budget Deadlines Near.  California, Delaware, Illinois, Louisiana, Massachusetts, North Carolina, New Jersey, New York, and Pennsylvania all face drops in their credit ratings.  California's constitutional budget deadline passed with no budget.  The state faces a $19 billion state budget shortfall. State Controller warns legislature that state may run out of money by August 1 and may not be able to make payments to state colleges and schools, local governments, contractors, and elected state officials and their staff.  News10.net. June 16, 2010.

Build America Bonds were designed to help states and cities that are short of cash to build roads, schools and bridges.  However, serious questions are being asked about the unforeseen costs and Citigroup is advising clients how to use derivatives and other financial mechanisms to short-sell Build America Bonds

Colorado delayed paying doctors and clinics who take care of the state's neediest patients in order to balance the state budget for the fiscal year ending June 30, 2010.  

According to Maine Watchdog, Maine has over a $2 billion unfunded liability for public employees' retiree health care costs.  

The Montana Legislative Budget Office predicts a $350 million dollar state budget shortfall by the end of this biennium and nearly $400 million for the next session.  

New Hampshire "eliminated" its state budget shortfall. In the words of one legislator, "we borrowed a few dollars, patched some holes in the roof, then we left and let someone else deal with the next storm."

Despite the gathering storm of financial woe, there is some light on the horizon. A dozen states have taken action to slash pensions to cut costs.  Scrippsnews.com. June 17, 2010.