From the press release:
Findings from the biannual report, The Fiscal Survey of States, released by the National Governors Association (NGA) and the National Association of State Budget Officers (NASBO) today, show fiscal year 2010 presented the most difficult challenge for states’ financial management since the Great Depression.
Although the nation’s economy shows signs of improvement, state fiscal conditions continue to deteriorate. To address falling revenues and meet balanced budget requirements, states have dramatically reduced spending from $687.3 billion in fiscal 2008 to $612.9 billion in fiscal 2010. The report indicates fiscal 2011will be equally challenging, in spite of modest revenue growth. Unfortunately, states will have to make additional spending cuts or increase taxes to close their budget gaps, actions that will slow the economic recovery.