States face $97 billion budget gap in next two years
Having just closed a $40 billion gap in the fiscal year (FY) 2009 budget, states may see that financial crevasse grow by another $97 billion over the next 18 to 24 months, according to a survey by the Washington-based National Conference of State Legislatures (NCSL). Shrinking revenue from sales, personal and corporate income tax is to blame. “State Budget Update: November 2008,” found that states already face a $32 billion gap between revenue and expenses, and that number is expected to grow by $65 billion in the next fiscal year, which begins on July 1 for most states. The survey found that officials in 15 states expect double-digit gaps in their FY2010 budgets. View the report.
5 states with largest expected shortfalls in FY2010 budgets
Read the Dec. 8, 2008, daily news article, “States face $97 billion budget gap in next two years,” for more information.