State Budget Troubles Worsen

Source: Elizabeth McNichol and Iris J. Lav, Center on Budget and Policy Priorities, September 26, 2008

From the summary:
New gaps have opened up in the budgets of at least 15 states plus the District of Columbia just two months after they struggled to close the largest budget shortfalls seen since the recession of 2001. These 15 states include more than half of the 29 states that have already moved to cut spending, use reserves, or raise revenues in order to adopt a balanced budget for the current fiscal year — which started July 1 in most states. Now, their budgets have fallen out of balance again.

Current estimates are that these mid-year gaps total $5.9 billion — 3 percent of the budgets of the eleven states that have estimated the size of the gap — but they will almost certainly widen as the continuing economic turmoil causes revenues to come in below estimates in more states.
See also:
Facing Deficits, Many States Are Imposing Cuts That Hurt Vulnerable Residents

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