Selling Out

The recession has taken a toll on individuals, the Federal Government and also U.S. cities and states.

Many cities and states are looking for ways to raise cash. In order to raise cash to fix and rebuild streets and bridges, Indianapolis voted last month to sell its water and sewer utilities for $1.9 billion, including the assumption of about $1.5 billion in debt, to a charitable trust. Other cities are considering following suit and privatizing utilities to raise cash.

How bad is it for states?

A recent report by the Pew Center on the States says that states as a whole face a trillion-dollar gap between the $2.35 trillion states have set aside for pensions and other benefits and the $3.35 trillion needed to pay those benefits.

See a slide show on the worst state budget gaps and the Pew Center on the States report.