Experts Predict $121 Billion Deficit for US States in 2010
The first half of 2009 saw staggering budget deficits, record unemployment and the largest infusion of federal dollars into state treasuries since the Great Depression, according to Stateline.org’s annual review of state-by-state legislative actions.
To date, lawmakers in about half the states have closed shop for the legislative year. As Americans struggled with the worst fiscal crisis in a generation, four states resorted to higher personal income and sales taxes, seven levied heftier tobacco taxes and at least 10 raised motor vehicle registration or court fees.
And, as tax revenues continue to come in lower than expected, it’s a good bet that many will have to reconvene to balance their budgets as required by law, according to Stateline.org’s annual review.
Experts predict a mammoth $121 billion deficit awaits states in fiscal 2010, which starts July 1 for all but four states.
States closed $100 billion in shortfalls with the help of the federal stimulus, and by cutting programs, dipping into rainy day funds and raising taxes and fees.
Stateline.org’s 2009 Legislative Review takes a look at major developments in state capitols as the country enters the second year of a national recession. The report includes an interactive graphic detailing how states are handling budget deficits and the federal stimulus package; the trends developing in key areas, such as education and health care; notable new legislation; and a chart of completed sessions and political control.
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
