State Budgets in Trouble (Part Two)

Last month, we noted that new gaps had opened in the budgets of at least fifteen states and the District of Columbia just two months after those states struggled to close the largest budget shortfalls seen since the recession of 2001.

This morning's New York Times reports ("Facing Deficits, States Get Out Sharper Knives," Jennifer Steinhauer) that at least 37 states and the District of Columbia have faced or are facing budget gaps totaling $66 billion in the 2009 fiscal year. The Times' article includes a nice map that compares the shortfalls on a state-by-state per-capita basis and as a percentage of each state's general fund, as well as changes in state tax revenue collection from 2007 to 2008. As we said back in October, fasten your seat belts; it's going to be a bumpy ride.

(click here for interactive version)

 

-- Mitch Nauffts