Many States Cut Budgets as Fiscal Squeeze Continues


Publication Date: April 2004

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

Author(s): Makeda Harris; Elizabeth McNichol

Research Area: Economics; Government

Keywords: State budgets; Fiscal future; Economic projections

Type: Report

Abstract:

State government continues to shrink as states struggle to deal with the lingering state fiscal crisis. States cut expenditures over the last three years as they filled budget gaps that totaled about $250 billion. Despite the turnaround in the national economy, many states continue to face gaps in their fiscal year 2005 budgets. States remain reluctant to raise taxes and are running out of short-term fixes; they are once again turning to spending cuts to close those gaps.