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Cities, states wrangle over cuts to local aid

In Minnesota, Republican Gov. Tim Pawlenty's cuts in state funding to local government forced cities and counties to consider their own round of layoffs, furloughs and benefit freezes. State reductions were so troubling in Massachusetts that three cities are now deciding whether to cancel their primary elections to conserve cash.

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Budget cuts drive states’ DMV changes

Drivers going to the department of motor vehicles will likely face longer lines and higher service fees in several states as recession-ravaged budgets force the shutdown of branch offices, a reduced work force and the need to raise revenue.

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AZ Land Department will be self-funded (access required)

The one budget bill that garnered a signature from Gov. Jan Brewer would fundamentally change the way the state Land Department is funded. Brewer on Aug. 21 signed H2014, which creates a self-funding mechanism for the Land Department and addresses issues at the Parks Department, the Department of Agriculture and other agencies.

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Are struggling community banks prepared for a new threat? (access required)

Most community banks in Arizona are losing money, lending is down, and a veteran banker concedes that every day is a challenge. It was a little too challenging for two Arizona banks, which were closed by state and federal regulators Aug. 14. A third bank is operating under federal orders to improve what were found to be “unsafe and unsound banking practices.”

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