Do you live in a state that's going broke?
Across the country, states aren't doing very well with their budgets. In fact, 27 U.S. states didn't have the money to pay their bills as of the end of fiscal year 2023, according to nonpartisan think tank Truth in Accounting. Connecticut, New Jersey, Illinois and Massachusetts faced the biggest shortfalls per taxpayer. "There are certainly tremendous challenges going forward," Oliver Giesecke, a research fellow at the Hoover Institution at Stanford University, told CNBC in a report published Nov. 4. There are several reasons why states might be struggling, but what it means for citizens is there's a very real risk of tax hikes and cuts to public services and benefits programs. Here's what you need to know about the financial trouble states are finding themselves in — along with how this could impact you.
Across the country, states aren't doing very well with their budgets. In fact, 27 U.S. states didn't have the money to pay their bills as of the end of fiscal year 2023, according to nonpartisan think tank Truth in Accounting. Connecticut, New Jersey, Illinois and Massachusetts faced the biggest shortfalls per taxpayer. "There are certainly tremendous challenges going forward," Oliver Giesecke, a research fellow at the Hoover Institution at Stanford University, told CNBC in a report published Nov. 4. There are several reasons why states might be struggling, but what it means for citizens is there's a very real risk of tax hikes and cuts to public services and benefits programs. Here's what you need to know about the financial trouble states are finding themselves in — along with how this could impact you.
Trump could axe the $7,500 EV credit in 2025
The $7,500 electric vehicle tax credit the Biden administration introduced under the Inflation Reduction Act (IRA) has been a game-changer for American drivers seeking affordable entry into the clean energy revolution. But with President-elect Donald Trump set to return in 2025, the federal government seems poised to pull the plug on the popular incentive. Speculation is mounting that Trump, who has long criticized clean energy subsidies and said tax credits and tax incentives "are not generally a very good thing," will move quickly to eliminate the credit as part of a broader tax reform plan. The impact could be significant: In August 2024, the White House said more than 250,000 Americans have claimed the IRA’s electric vehicle tax credit since January, saving these buyers about $1.5 billion total. Nearly all of these buyers claimed the incentive at the point of sale. So if you’re thinking of joining the EV revolution with federal tax help, you’d better hustle.
The $7,500 electric vehicle tax credit the Biden administration introduced under the Inflation Reduction Act (IRA) has been a game-changer for American drivers seeking affordable entry into the clean energy revolution. But with President-elect Donald Trump set to return in 2025, the federal government seems poised to pull the plug on the popular incentive. Speculation is mounting that Trump, who has long criticized clean energy subsidies and said tax credits and tax incentives "are not generally a very good thing," will move quickly to eliminate the credit as part of a broader tax reform plan. The impact could be significant: In August 2024, the White House said more than 250,000 Americans have claimed the IRA’s electric vehicle tax credit since January, saving these buyers about $1.5 billion total. Nearly all of these buyers claimed the incentive at the point of sale. So if you’re thinking of joining the EV revolution with federal tax help, you’d better hustle.
FL residents outraged at late-night towing
Brennan Wells of Pasco County, Florida thought his truck had been stolen when he woke up one morning to find it missing from his driveway. However, according to ABC Action News, a tracker on the vehicle showed it had been towed 14 miles away to A-1 Recovery’s impound lot. According to Wells, footage from his security camera showed a stranger outside his home at 2 a.m. taking a picture of his license plate and towing the vehicle away. When the same thing happened to his neighbor two nights later, they got lucky and stopped their car from being towed before it left their driveway. In the recording of the incident, the towing employees claimed they had a contract with the community's homeowners association (HOA) and were just doing their jobs. But Wells and other residents believe towing vehicles in the middle of the night from private property goes too far. “My registration was out of date by a month,” Wells told ABC Action News Investigator Adam Walser. “It’s an abuse of power for sure." While it may not have seemed that way to the HOA, county law enforcement had a different idea.
Brennan Wells of Pasco County, Florida thought his truck had been stolen when he woke up one morning to find it missing from his driveway. However, according to ABC Action News, a tracker on the vehicle showed it had been towed 14 miles away to A-1 Recovery’s impound lot. According to Wells, footage from his security camera showed a stranger outside his home at 2 a.m. taking a picture of his license plate and towing the vehicle away. When the same thing happened to his neighbor two nights later, they got lucky and stopped their car from being towed before it left their driveway. In the recording of the incident, the towing employees claimed they had a contract with the community's homeowners association (HOA) and were just doing their jobs. But Wells and other residents believe towing vehicles in the middle of the night from private property goes too far. “My registration was out of date by a month,” Wells told ABC Action News Investigator Adam Walser. “It’s an abuse of power for sure." While it may not have seemed that way to the HOA, county law enforcement had a different idea.
Only 44% of Americans have a retirement plan
Without a well-defined plan for spending in retirement, Americans could be facing unexpected and unnecessary stress. Allianz Life Insurance’s recent study reveals that only 44% of Americans have a retirement income plan. Allianz’s Vice President of Consumer Insights, Kelly LaVigne, commented “if you don’t know how you will draw from your retirement assets for income, then you aren’t ready to retire.” Having the right retirement strategy for how and when you’ll spend your income is key to reducing the decisions you’ll need to make once you reach retirement age. Unfortunately, without a plan, you risk joining the 31% of Americans who are overspending in retirement, according to a report from retirement magazine 401(k)Specialist.
Without a well-defined plan for spending in retirement, Americans could be facing unexpected and unnecessary stress. Allianz Life Insurance’s recent study reveals that only 44% of Americans have a retirement income plan. Allianz’s Vice President of Consumer Insights, Kelly LaVigne, commented “if you don’t know how you will draw from your retirement assets for income, then you aren’t ready to retire.” Having the right retirement strategy for how and when you’ll spend your income is key to reducing the decisions you’ll need to make once you reach retirement age. Unfortunately, without a plan, you risk joining the 31% of Americans who are overspending in retirement, according to a report from retirement magazine 401(k)Specialist.
Miami condo owners hit with $21M repairs fee
A $21 million special assessment fee has outraged residents of two 16-year-old buildings at 1060 Brickell in Miami, Florida, with some unit owners facing individual bills exceeding $40,000. "I think it's excessive," resident Nima Mahdjour told CBS News. "I feel like I'm being milked." A special assessment fee is paid by condo owners on top of their usual monthly maintenance fees. According to the report, the condo board approved the special assessment fee based on findings from a structural integrity reserve study, which noted most systems were "generally serviceable" but some require immediate repairs, maintenance and replacements. However, building residents claim the process was rushed, needed more transparency, and bypassed the formal unit-owner vote. They're questioning both the necessity and speed of the decision. When asked about this, the Association's General Counsel, Marc Halpern, cited Florida laws put in place after the Surfside Champlain Towers collapse in 2021, which claimed the lives of 98 people.
A $21 million special assessment fee has outraged residents of two 16-year-old buildings at 1060 Brickell in Miami, Florida, with some unit owners facing individual bills exceeding $40,000. "I think it's excessive," resident Nima Mahdjour told CBS News. "I feel like I'm being milked." A special assessment fee is paid by condo owners on top of their usual monthly maintenance fees. According to the report, the condo board approved the special assessment fee based on findings from a structural integrity reserve study, which noted most systems were "generally serviceable" but some require immediate repairs, maintenance and replacements. However, building residents claim the process was rushed, needed more transparency, and bypassed the formal unit-owner vote. They're questioning both the necessity and speed of the decision. When asked about this, the Association's General Counsel, Marc Halpern, cited Florida laws put in place after the Surfside Champlain Towers collapse in 2021, which claimed the lives of 98 people.
Sweetwater mobile park residents face eviction
Residents of Li'l Abner Mobile Home Park in Sweetwater, Florida, were recently notified that they'll need to find somewhere else to live and quickly. The community of more than 900 mobile homes, together housing roughly 2,000 to 3,000 people per the mayor's estimate, will close in May 2025 to make way for new affordable and workforce housing. Mobile home owners usually own the home but rent the land it stands on. The land owner in this case, CREI Holdings, says it will provide a financial incentive of $14,000 to residents who leave by January 31, 2025. Those who leave by March 31 or April 30, will receive $7,000 and $3,000, respectively, though many tenants say it's not enough time or money, according to a NBC6 report. Sergio Zamora lives in the park with his wife and in-laws, who've had a home in Li'l Abner Mobile Home Park for more than 30 years. “They paid off the house to be told you don't have a place to live anymore,” Zamora told NBC6. “Imagine saying you own a property and someone tells you don't.”
Residents of Li'l Abner Mobile Home Park in Sweetwater, Florida, were recently notified that they'll need to find somewhere else to live and quickly. The community of more than 900 mobile homes, together housing roughly 2,000 to 3,000 people per the mayor's estimate, will close in May 2025 to make way for new affordable and workforce housing. Mobile home owners usually own the home but rent the land it stands on. The land owner in this case, CREI Holdings, says it will provide a financial incentive of $14,000 to residents who leave by January 31, 2025. Those who leave by March 31 or April 30, will receive $7,000 and $3,000, respectively, though many tenants say it's not enough time or money, according to a NBC6 report. Sergio Zamora lives in the park with his wife and in-laws, who've had a home in Li'l Abner Mobile Home Park for more than 30 years. “They paid off the house to be told you don't have a place to live anymore,” Zamora told NBC6. “Imagine saying you own a property and someone tells you don't.”
Mortgage rate trends this week
Thirty-year fixed mortgage rates moved up this week, up from 6.78% last week, to an average of 6.84%. “Mortgage rates ticked back up this week, continuing to approach 7 percent,” says Sam Khater, chief economist at housing giant Freddie Mac. “Heading into the holidays, purchase demand remains in the doldrums. While for-sale inventory is increasing modestly, the elevated interest rate environment has caused new construction to soften.”
Thirty-year fixed mortgage rates moved up this week, up from 6.78% last week, to an average of 6.84%. “Mortgage rates ticked back up this week, continuing to approach 7 percent,” says Sam Khater, chief economist at housing giant Freddie Mac. “Heading into the holidays, purchase demand remains in the doldrums. While for-sale inventory is increasing modestly, the elevated interest rate environment has caused new construction to soften.”
Who really wins when a divorce drags on?
It may come as a bit of a surprise that John H. Foster, managing partner of the $800 million private equity firm HealthPointCapital, claims to be $12 million in debt. It certainly caused his soon-to-be ex-wife, Stephaine Foster, to raise her eyebrows. While John attributes his financial trouble to Stephanie’s alleged lavish spending, causing his nearly $50 million net worth to fall – Stephanie suspects there’s more to the story. “He’s asset-stripping the marital estate,” Stephanie told The Post in an exclusive interview. Stephanie questioned John’s financial struggles, pointing out his indulgent habits. According to Stephanie, the 82-year-old has been flying between Florida and New York for high-end beauty treatments, including Botox, hair dyeing and manicures. According to The Post, Stephanie's lawyer, BriAnne Copp, reinforced her skepticism during a recent hearing stating, “While he’s lived a fabulous lifestyle for the last 60 years, now that he’s embroiled in a divorce, now he’s suddenly $12 million in debt.” As the couple’s legal battle continues to unfold, whether John is hiding assets — and what Stephanie is ultimately entitled to — remains unresolved. But their ongoing disagreement sure is costing them.
It may come as a bit of a surprise that John H. Foster, managing partner of the $800 million private equity firm HealthPointCapital, claims to be $12 million in debt. It certainly caused his soon-to-be ex-wife, Stephaine Foster, to raise her eyebrows. While John attributes his financial trouble to Stephanie’s alleged lavish spending, causing his nearly $50 million net worth to fall – Stephanie suspects there’s more to the story. “He’s asset-stripping the marital estate,” Stephanie told The Post in an exclusive interview. Stephanie questioned John’s financial struggles, pointing out his indulgent habits. According to Stephanie, the 82-year-old has been flying between Florida and New York for high-end beauty treatments, including Botox, hair dyeing and manicures. According to The Post, Stephanie's lawyer, BriAnne Copp, reinforced her skepticism during a recent hearing stating, “While he’s lived a fabulous lifestyle for the last 60 years, now that he’s embroiled in a divorce, now he’s suddenly $12 million in debt.” As the couple’s legal battle continues to unfold, whether John is hiding assets — and what Stephanie is ultimately entitled to — remains unresolved. But their ongoing disagreement sure is costing them.
Mom-and-pop shop resisted eminent domain seizure
Eighty Eight Coffee Co. in Manchester, New Hampshire, has been eighty-sixed. The local restaurant and coffee shop, a popular spot for students and residents alike, seems to have ended its struggle with the city, which had apparently pursued ownership of the property for a sewer project via eminent domain. "We’ll be in operation until end of November," Eighty Eight Coffee Co. shared in a social media post Oct. 30, indiciating it had signed a purchase and sales agreement, though perhaps reluctantly. The shop had been battling the city for what it considered fair compensation. "My parents have owned the property since ’99," Corey Tong, one of the owners of the coffee shop, told CBS News Boston on Oct. 11. "In 2023, they reached out to us to say they wanted this property as part of the Cemetery Drain Brook Tunnel." According to the city, the Cemetery Brook Drain Tunnel Project includes construction of a new drainage system as part of a plan that aims to improve water quality in the Merrimack River, which provides drinking water to nearby communities. Tong works at the shop with his wife and brother, and says his mom "comes in sometimes on the weekends to help out."
Eighty Eight Coffee Co. in Manchester, New Hampshire, has been eighty-sixed. The local restaurant and coffee shop, a popular spot for students and residents alike, seems to have ended its struggle with the city, which had apparently pursued ownership of the property for a sewer project via eminent domain. "We’ll be in operation until end of November," Eighty Eight Coffee Co. shared in a social media post Oct. 30, indiciating it had signed a purchase and sales agreement, though perhaps reluctantly. The shop had been battling the city for what it considered fair compensation. "My parents have owned the property since ’99," Corey Tong, one of the owners of the coffee shop, told CBS News Boston on Oct. 11. "In 2023, they reached out to us to say they wanted this property as part of the Cemetery Drain Brook Tunnel." According to the city, the Cemetery Brook Drain Tunnel Project includes construction of a new drainage system as part of a plan that aims to improve water quality in the Merrimack River, which provides drinking water to nearby communities. Tong works at the shop with his wife and brother, and says his mom "comes in sometimes on the weekends to help out."
Chase bank withholds check from girl for year
Some 10-year-olds sell cookies and lemonade to earn a bit of spending cash, but not Kinley Maner. Kinley, from Thatcher, Arizona, is earning money by raising and selling chickens at the local fair. “She really enjoyed it, had a lot of fun, learned a lot about chickens,” her father, J.R. Maner [told Arizona’s Family On Your Side. “It really taught her kind of strict obedience of being out there and taking care of an animal.” After showing her feathered friends at the Graham County Fair, Kinley, like many people who show animals at the fair, put them up for auction. When the bidding was over, Kinely managed to sell her six chickens for a whopping $2,100 and change, which her mother, Kali, electronically deposited into her bank account. A day later, however, Chase Bank froze the check and then closed Kali's account entirely. A year later, Kinley still hadn't received her profits.
Some 10-year-olds sell cookies and lemonade to earn a bit of spending cash, but not Kinley Maner. Kinley, from Thatcher, Arizona, is earning money by raising and selling chickens at the local fair. “She really enjoyed it, had a lot of fun, learned a lot about chickens,” her father, J.R. Maner [told Arizona’s Family On Your Side. “It really taught her kind of strict obedience of being out there and taking care of an animal.” After showing her feathered friends at the Graham County Fair, Kinley, like many people who show animals at the fair, put them up for auction. When the bidding was over, Kinely managed to sell her six chickens for a whopping $2,100 and change, which her mother, Kali, electronically deposited into her bank account. A day later, however, Chase Bank froze the check and then closed Kali's account entirely. A year later, Kinley still hadn't received her profits.
Moneywise Digest