Austerity trickles down...

State budget cuts are being passed off to local governments, which must further cut services or raise taxes.  According to the New York Times, "The state budget squeeze is fast becoming a city budget squeeze, as struggling states around the nation plan deep cuts in aid to cities and local governments that will almost certainly result in more service cuts, layoffs and local tax increases...Moody’s Investors Service, the ratings agency, said in a report last week that many states '' 'are increasingly pushing down their problems to their local governments.' The Moody’s report warned that this would be 'the toughest year for local governments since the economic downturn began.'”