Hit with the deepest recession since the Great Depression, state lawmakers in the past three years have confronted ballooning budget gaps triggered by steep revenue declines.
For the first time in a long time, however, there is some good news: FY 2011 state revenues are widely expected to exceed last year’s collections. And while the return to pre-recession levels is expected to be painfully slow and uneven across states, at least revenues are on the road to recovery.
So much for the good news….
…The end of stimulus money and still shaky revenues mean FY 2012 may be the worst budget year yet.