Fiscal Crisis is Shrinking State Budgets

Publication Date: February 2004

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

Author(s): Elizabeth McNichol; David Kamin

Research Area: Banking and finance; Government

Keywords: State budgets; Economic projections; Fiscal future

Type: Report


States faced gaps of more than $150 billion in their combined fiscal year 2003 and 2004 budgets. Since all states but one are required by constitution or law to balance their budgets, they have taken a variety of actions to close these gaps. In the process, states have cut spending dramatically. The continuing state fiscal crisis is causing state government to shrink and is putting important state services at risk.