[mattduke]

$this->bbcode_second_pass_quote('', 'E')ven as the U.S. appears to be on the mend -- gross domestic product has climbed three straight quarters -- finances in Arizona, Illinois, New Jersey, New York and other states show few signs of improvement. Forty-six states face budget shortfalls that add up to $112 billion for the fiscal year ending next June, according to the Center on Budget and Policy Priorities, a Washington research institution. State spending is 12 percent of U.S. GDP.

[mattduke]

$this->bbcode_second_pass_quote('', 'I')llinois plans to add $900 million in Build America Bonds to the $755 million in securities it sold in June as the cost of insuring the state’s debt against default reached a record high.

The cost of an Illinois credit-default swap has more than doubled since April 5 to a record of 370 basis points, or $370,000 to protect $10 million of debt, according to CMA DataVision. The state rescheduled the Build America sale for mid-July, after originally planning it for as early as this week, Dow Jones reported, citing John Sinsheimer, Illinois’s capital markets director.