States Continue to Feel Recession’s Impact

Source: Elizabeth McNichol, Phil Oliff and Nicholas Johnson, Center on Budget and Policy Priorities, February 27, 2012

From the summary:
State budget estimates for the upcoming fiscal year show that states still face a long and uncertain recovery. For fiscal year 2013, the fiscal year that begins July 1, 2012, 29 states have projected or have addressed shortfalls totaling $47 billion.

The Great Recession that started in 2007 caused the largest collapse in state revenues on record. Since bottoming out in 2010, revenues have begun to grow again, but states are still far from fully recovered. As of the third quarter of 2011, state revenues remained 7 percent below pre-recession levels, and are not growing fast enough to recover fully soon.

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