Must-Know News for Jan. 31, 2011

by Saxplayer000o1

“Left unchanged, Medicaid will cost Ohio taxpayers an additional $1.6 billion next year.

That’s a 49 percent jump in the state’s share of costs for the health-care program covering more than 2 million poor and disabled Ohioans, pushing to $4.9 billion the cost to the state for the next fiscal year.

Most of the increase to Ohioans is due to the loss of federal stimulus money. The federal government has been covering a higher share of Medicaid costs to help states during the recession, but that help ends June 30. In addition, state officials are projecting an increase in enrollment and utilization of services, both of which also will drive up costs.”

“Next year is “absolutely the worst budget year certainly in three decades,” according to Jay Himes, executive director of the Pennsylvania Association of School Business Officials. And most York County districts, like those around the state, are looking to trim costs any way they can.

Himes said 2011-12 presents districts with the “school budget trifecta” — decreasing federal, state and local revenue. It’s not a question of if districts have deficits, it’s a question of how much.”


  • Other news, headlines and opinion:

European Inflation Quickens to Two-Year High of 2.4%

Moody’s cuts Egypt a notch to Ba2, negative outlook

Food staples starting to run out in Egypt

French, British Banks Have Most Exposure to Egyptian Loans, BIS Data Show

Support grows for lengthening Greek debt payback

Spain Lenders May Need $52 Billion of Capital, JPMorgan Says

Superintendent: ‘Perfect storm’ threatens Arlington school system (NY)

Article Continues Below

Espirito Santo Sells Loans as Iberian Lenders Plan Abandon Infrastructure

Chrysler Posts $199 Million Net Loss as Vehicle Shipments Fall

From Zerohedge:

  • Lonely Analyst Warns of 2015 Bank Crisis Amid `Upbeat’ Davos (Bloomberg)
  • Wall Street’s Collapse to Be Mystery Forever (Bloomberg)
  • Egypt and Tunisia usher in the new era of global food revolutions (Evans-Pritchard)
  • Central Bank Raises Priority of Price Controls (Xinhua)
  • Brazil and China Trade Tensions Set to Rise (FT)
  • United, Delta Profit at Risk From `Silent Killer’ in Fuel Hedges (Bloomberg)
  • Home Prices Sink Further (WSJ)
  • Obama to Send Congress Multitrillion-Dollar Budget Likely to Show Cutbacks (Bloomberg)
  • US Pushes for Calm Transition in Egypt (FT)
  • Europe Summit to Focus on Funds (WSJ)
  • RBA May Keep Rate Unchanged to Gauge Flooding Damage (Bloomberg)
  • Traders Laying Groundwork For New Type Of Credit Derivative (WSJ)
  • Canada Bears Tripling Bets as Carney Says Loonie Too Strong for Exporters (Bloomberg)
  • Getting active: Icahn defends his role as an investor (Post)
  • The Daily LOL: A Cross of Rubber (NYT)

European economic data:

  • Germany Retail Sales -0.3% m/m -1.3% y/y – lower than expected.Consensus 2.0% m/m +1.1% y/y. Previous -2.4% m/m 2.0% y/y.
  • Eurozone CPI Estimate 2.4% y/y– higher than expected.Consensus 2.3% y/y. Previous 2.2% y/y.

Follow IWB on Facebook and Twitter