25 States Face Total Budget Shortfall Of At Least $40 Billion In 2009; 6 Others Expect Budget Problems

Publication Date: April 2008

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Elizabeth C. McNichol; Iris J. Lav

Research Area: Banking and finance; Government

Keywords: Economic projections; Fiscal future; State budgets; Recession

Type: Report

Abstract:

At least 25 states plus the District of Columbia, including several of the nation's largest states, faced or are facing an estimated $40 billion in combined shortfalls in their fiscal year 2009 budgets. Another three states also face shortfalls for fiscal year 2009 (which begins July 2008 in most states) but the size of their shortfalls has not been estimated, bringing the total number of states that faced or are facing shortfalls for FY2009 to 28. And three other states expect budget problems in fiscal year 2010, although some of those gaps may occur earlier than expected.