Shore Up State Budgets

A stunning 43 states and the District of Columbia have FY 2009 budget gaps totaling $89.2 billion. Midyear budget gaps for 41 states and the District of Columbia in FY 2009 already have reached $42 billion—on top of the $48 billion combined shortfall that 29 states had to make up when enacting their FY 2009 budgets.

For the first time in years, cities are reporting concerns over revenue collected from property, sales and income taxes. These are the three major income sources for local governments.

45 States Face Budget Shortfalls

Note: Includes states with shortfalls in fiscal 2009 or projected shortfalls for fiscall 2010.
Source: cbpp.org

Because of the budget crises in the states:

1 million people will lose health care.
34 states reduced aid to school districts, resulting in shorter school days, higher textbook fees and lost education jobs.
30 states must reduce services—including services relied upon by the most vulnerable—because of the state budget crisis.
20 states have either imposed or are considering across-the-board spending cuts.
34 states have cut or proposed cuts to their state government workforces.
23 states are under hiring freezes for state government employees.