08/14/2011 12:32 pm ET Updated Oct 14, 2011

New York Times: Debt Deal Does 'Real Damage' At The Local Level

States and cities had already endured a harrowing three-year financial slide when the debt-ceiling crisis darkened their outlooks even further. In the space of just a few weeks, the Republican-led standoff on spending and taxes brought them a triple dose of bad news: a budget deal that will probably lead to a significant reduction in federal aid; a bond downgrade that could eventually trickle down to the local and state level, making borrowing more expensive; and a stock market plunge that is bleeding state employee pension funds.

Read more on The New York Times