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New York's projected deficit
1.10.03
Politics and Economy:
In the Red
More on This Story:
State Budget Shortfall Map

Budget figures for 2003 come from the recent survey by the National Conference of State Legislatures, published in November 2002. They reflect the revenue and expenditure situation through the early months of FY 2003 — which included budget reductions already made to meet shortfalls. This survey showed that half the states are facing gaps in their fiscal year (FY) 2003 budgets. Two-thirds of states reported that revenues are failing to meet projected levels. More than half the states report that expenditures are exceeding budgeted levels.

Figures for 2004 were collected by the Center on Budget and Policy Priorities from statements from government officials, working documents, nonprofit organizations that monitor state expenditures. Numbers are expected to change, but represent the best-available information to date.

Additional information for each state comes from state budget offices and state governor's offices.

Map of the United States


Alabama
FY 2003 Budget Deficit (millions of dollars) = 5
Deficit as Percent of State Budget = 0.4%
FY 2004 Budget Deficit (millions of dollars) = 1,300
Deficit as Percent of State Budget = 24.2%

Last year Alabama cut costs by suspending some jury trials. The state Web site includes complete to-the-penny lists of appropriations for 2003.

State of Alabama Executive Budget Office


Alaska
FY 2003 Budget Deficit (millions of dollars) = 490
Deficit as Percent of State Budget = 20.6%
FY 2004 Budget Deficit (millions of dollars) = 896
Deficit as Percent of State Budget = 37.8%

In his recent report to the State Legislature Alaska's governor for the first time stressed the need to find sources other than oil revenue to run the state's programs.

Alaska Office of Management and Budget


Arkansas
FY 2003 Budget Deficit (millions of dollars) = 0
Deficit as Percent of State Budget = 0%
FY 2004 Budget Deficit (millions of dollars) = 223
Deficit as Percent of State Budget = 7%

In a November address Arkansas Governor Huckabee broached the issue of raising taxes: "It will require new revenues to meet these demands."

Arkansas Department of Finance and Administration


Arizona
FY 2003 Budget Deficit (millions of dollars) = 500
Deficit as Percent of State Budget = 8%
FY 2004 Budget Deficit (millions of dollars) = 1,000
Deficit as Percent of State Budget = 15.8%

For fiscal year 2002 Arizona's income from the personal income tax is 14% below forecast, and the corporate income tax is 6.6% below forecast.

Arizona Office of Strategic Planning and Budget


California
FY 2003 Budget Deficit (millions of dollars) = 6,100
Deficit as Percent of State Budget = 7.8%
FY 2004 Budget Deficit (millions of dollars) = 15,000 to 25,000
Deficit as Percent of State Budget = 19.5% - 32.5%

The Legislative Analyst's office estimates California's 2004 deficit at $15 billion. The governor estimates an 18-month 2003-2004 shortfall at 34.8 billion.

California Department of Finance
California Legislative Analyst's Office


Colorado
FY 2003 Budget Deficit (millions of dollars) = 558
Deficit as Percent of State Budget = 9.2%
FY 2004 Budget Deficit (millions of dollars) = 900
Deficit as Percent of State Budget = 13.4%

As of December 2002, state estimates showed that the Colorado General Fund would need to be tapped for an additional $738 million to balance the budget.

Colorado Office of State Planning and Budget


Connecticut
FY 2003 Budget Deficit (millions of dollars) = 495.5
Deficit as Percent of State Budget = 4.1%
FY 2004 Budget Deficit (millions of dollars) = 1,000 to 1,200
Deficit as Percent of State Budget = 8.6% to 10.3%

"Today I am asking you to act on a problem that threatens the economic health of Connecticut. Our budget is out of balance. We have a deficit. The Constitution requires us to fix it, and the people of Connecticut expect us to take responsible action." --Gov. Rowland to Connecticut General Assembly, Dec. 18, 2002.

Connecticut State Office of Policy and Management


District of Columbia
FY 2004 Budget Deficit (millions of dollars) = 100
Deficit as Percent of State Budget = n/a

In September 2002, the District of Columbia issued a revised revenue estimate for FY 2003 that was $322.7 million lower than the estimate released in May. The revised estimate reflected a $285.2 million drop in tax and non-tax revenues and a $37.5 million downward revision in anticipated Medicaid revenues.

District of Columbia Budget and Key Priorities


Delaware
FY 2003 Budget Deficit (millions of dollars) = 44.2
Deficit as Percent of State Budget = 1.8%
FY 2004 Budget Deficit (millions of dollars) = n/a
Deficit as Percent of State Budget = n/a

In November, Delaware's governor announced a fourth round of budget cuts, totaling another $34.8 million. The state now has a hiring freeze and the governor has asked the Department of Education to cut 1% from operating budgets.

State of Delaware, Office of the Budget


Florida
FY 2003 Budget Deficit (millions of dollars) = 0
Deficit as Percent of State Budget = 0%
FY 2004 Budget Deficit (millions of dollars) = 2,000
Deficit as Percent of State Budget = 10.1%

Florida is one of the few states to report an stable outlook for the next fiscal year. However on Nov. 15, 2002, the state's current year revenue estimate was reduced by $7 million. The FY 2004 estimate was reduced by $232 million.

Florida Budget Reports


Georgia
FY 2003 Budget Deficit (millions of dollars) = 450
Deficit as Percent of State Budget = 3.1%
FY 2004 Budget Deficit (millions of dollars) = 900
Deficit as Percent of State Budget = 5.8%

Georgia is one state where cuts won't come from Medicaid because the state has a law mandating that Medicaid bills must be paid. Governor-elect Sonny Perdue is looking elsewhere for places to cut spending, saying "We need a new attitude toward our state budget. We’re in a period where the state simply has to go on a diet. We’ll have to push back from the table and do without some things that we might like to have."

Georgia Office of Planning and Budget


Hawaii
FY 2003 Budget Deficit (millions of dollars) = 162
Deficit as Percent of State Budget = 4.6%
FY 2004 Budget Deficit (millions of dollars) = n/a
Deficit as Percent of State Budget = n/a

In the November 2002 survey of state finances by the National Conference of State Legislatures, Hawaii listed it's fiscal outlook as "optimistic."

State of Hawaii Budget Office


Iowa
FY 2003 Budget Deficit (millions of dollars) = 50
Deficit as Percent of State Budget = 1%
FY 2004 Budget Deficit (millions of dollars) = n/a
Deficit as Percent of State Budget = n/a

Iowa's governor recently released the "Families First FY 2003 Budget." According to the document, Iowa is experiencing the "lowest revenue growth in 50 years."

Iowa Department of Management

Idaho
FY 2003 Budget Deficit (millions of dollars) = 160
Deficit as Percent of State Budget = 8.1%
FY 2004 Budget Deficit (millions of dollars) = 160
Deficit as Percent of State Budget = 8.1%

Idaho Division of Financial Management


Illinois
FY 2003 Budget Deficit (millions of dollars) = 200
Deficit as Percent of State Budget = 0.9%
FY 2004 Budget Deficit (millions of dollars) = 2,774
Deficit as Percent of State Budget = 11.4%

The Illinois State Budget Update begins with the statement that during 2003 the state faced a challenge "not seen in 50 years." The legislature rates Illinois 2004 fiscal outlook as "pessimistic."

Illinois Bureau of the Budget


Indiana
FY 2003 Budget Deficit (millions of dollars) = 300
Deficit as Percent of State Budget = 3%
FY 2004 Budget Deficit (millions of dollars) = 850
Deficit as Percent of State Budget = 8.8%

Closing the gap in the 2002 budget included across-the board budget cuts, employee furloughs, tax increases, fee increases, tapping rainy day and other funds, early retirement programs, delayed capital projects and gaming expansion. Concerned citizens can track the process of the state's budget through the legislature by signing up for the state's online BillWatch program.

Indiana State Budget Agency


Kansas
FY 2003 Budget Deficit (millions of dollars) = 254.3
Deficit as Percent of State Budget = 5.8%
FY 2004 Budget Deficit (millions of dollars) = 700
Deficit as Percent of State Budget = 15.7%

Cuts for 2002 in Kansas included elimination of a SIDS program and pregnancy program; raising MediKan eligibility to 18 months; reduction in support of state historic sites and many other changes. In 2003 an anticipated 31,000 senior citizens will be cut from a program offering free meals.

Kansas Division of the Budget


Kentucky
FY 2003 Budget Deficit (millions of dollars) = 220
Deficit as Percent of State Budget = 5%
FY 2004 Budget Deficit (millions of dollars) = 360
Deficit as Percent of State Budget = 5.1%

Governor Paul Patton commuted the sentences of 567 low-level felons just before Christmas to save the state money. Balancing the 2003-2004 budget requires a revenue increase of nearly 10 percent.

Kentucky Office of State Budget Director


Louisiana
FY 2003 Budget Deficit (millions of dollars) = 86
Deficit as Percent of State Budget = 1.3%
FY 2004 Budget Deficit (millions of dollars) = n/a
Deficit as Percent of State Budget = n/a

Louisiana Department of Elections and Registration


Massachusetts
FY 2003 Budget Deficit (millions of dollars) = 547
Deficit as Percent of State Budget = 2.6%
FY 2004 Budget Deficit (millions of dollars) = 1,400 to 2,000
Deficit as Percent of State Budget = 6.1% to 8.8%

To meet the budget crunch in 2002 Massachusetts has reinstated a levy on capital gains and trimmed $2 million from the budget by cutting back on flu vaccine. The incoming governor anticipates a shortfall of $2 billion for 2004.

Commonwealth of Massachusetts Fiscal Affairs Division


Maryland
FY 2003 Budget Deficit (millions of dollars) = 590
Deficit as Percent of State Budget = 5.5%
FY 2004 Budget Deficit (millions of dollars) = 1,200
Deficit as Percent of State Budget = 11%

The state of Maryland has had a hiring freeze in place for over a year. In late November the governor proposed an additional 4.9 percent cut in funding for most state agencies.

Maryland Department of Budget and Management


Maine
FY 2003 Budget Deficit (millions of dollars) = 148.2
Deficit as Percent of State Budget = 5.8%
FY 2004 Budget Deficit (millions of dollars) = 375 to 475
Deficit as Percent of State Budget = 14.5% to 18.4%

The governor proposed more budget reductions for a special session that began Nov. 13, 2002. Some recent actions include three furlough days for state employees, travel and hiring freezes and capital expenditure freezes.

State of Maine Bureau of the Budget


Michigan
FY 2003 Budget Deficit (millions of dollars) = 600
Deficit as Percent of State Budget = 6.5%
FY 2004 Budget Deficit (millions of dollars) = 1,800
Deficit as Percent of State Budget = 19.6%

During 2002 all state agency funding, with the exception of primary and secondary education, was cut. Higher education was spending was cut 2.5 percent. Legislators have proposed eliminating mandatory minimum sentencing laws for drug offenders in order to save money.

Michigan Office of the Budget


Minnesota
FY 2003 Budget Deficit (millions of dollars) = 1,690
Deficit as Percent of State Budget = 11.5%
FY 2004 Budget Deficit (millions of dollars) = 2,442
Deficit as Percent of State Budget = 18.7%

Last year outgoing Governor Jesse Ventura shut down the governor's mansion and laid off most of the staff. The state's Web site invites citizen participation with this call: "Do you have ideas to help solve the State Budget Deficit? Click to send us your ideas."

Minnesota Department of Finance


Missouri
FY 2003 Budget Deficit (millions of dollars) = 848.3
Deficit as Percent of State Budget = 10.7%
FY 2004 Budget Deficit (millions of dollars) = 1,000
Deficit as Percent of State Budget = 13.1%

According to the Associated Press, Missouri lawmakers "plan to end health-care coverage for 36,000 low-income parents. Appropriations for higher education also face deep cuts, forcing the University of Missouri to raise tuition 8.4% and to add a $ 9-per-credit-hour surcharge."

Missouri Division of Planning


Mississippi
FY 2003 Budget Deficit (millions of dollars) = 96.8
Deficit as Percent of State Budget = 2.8%
FY 2004 Budget Deficit (millions of dollars) = n/a
Deficit as Percent of State Budget = n/a

Mississippi made deep cuts in Medicaid in order to balance the 2002 budget.

Mississippi Department of Finance and Administration


Montana
FY 2003 Budget Deficit (millions of dollars) = 58
Deficit as Percent of State Budget = 4.6%
FY 2004 Budget Deficit (millions of dollars) = 66
Deficit as Percent of State Budget = 4.9%

Governor Judy Martz recently presented a budget that for the first time in years proposed tapping the coal tax trust fund — to the tune of $93 million.

Montana Office of Budget and Program Planning


North Carolina
FY 2003 Budget Deficit (millions of dollars) = 1,700
Deficit as Percent of State Budget = 11%
FY 2004 Budget Deficit (millions of dollars) = 1,700 to 2000
Deficit as Percent of State Budget = 12.4% to 14.6%

North Carolina balanced its 2003 fiscal budget. However, an additional $1.5 billion is needed for the next budget. Legislators are debating new taxes and spending cuts of up to 10 percent in all agencies.

North Carolina Office of State Budget and Management


North Dakota
FY 2003 Budget Deficit (millions of dollars) = 7.6
Deficit as Percent of State Budget = 0.9%
FY 2004 Budget Deficit (millions of dollars) = n/a
Deficit as Percent of State Budget = n/a

North Dakota is projecting a stable budget outlook for next year. Major tax categories are performing slightly ahead of revised projections.

North Dakota Office of Management and Budget


Nebraska
FY 2003 Budget Deficit (millions of dollars) = 160.5
Deficit as Percent of State Budget = 5.9%
FY 2004 Budget Deficit (millions of dollars) = 337 to 449
Deficit as Percent of State Budget = 21.2% to 28.2%

During a special session this past summer, the Legislature enacted changes that included across-the-board budget cuts, cuts in higher education, Medicaid, and local revenue sharing, fee increases, and tapping state funds. The effects of an ongoing drought have also lowered state revenues. Nebraska law does not permit deficit spending.

Nebraska Budget Division


New Hampshire
FY 2003 Budget Deficit (millions of dollars) = 490
Deficit as Percent of State Budget = 20.6%
FY 2004 Budget Deficit (millions of dollars) = 896
Deficit as Percent of State Budget = 37.8%

New Hampshire's state budget shortfall has grown to nearly twice the earlier estimates. "It's probably one of the toughest years in history," said Administrative Services Commissioner Donald Hill.

New Hampshire Budget Office


New Jersey
FY 2003 Budget Deficit (millions of dollars) = 6,000
Deficit as Percent of State Budget = 25.6%
FY 2004 Budget Deficit (millions of dollars) = 4,000
Deficit as Percent of State Budget = 19.0%

Last year New Jersey's budget initiative focused on collecting corporate taxes. This year observers anticipate a showdown in the legislature over the issue of raising income and sin taxes.

New Jersey Division of Elections


New Mexico
FY 2003 Budget Deficit (millions of dollars) = 30
Deficit as Percent of State Budget = 0.8%
FY 2004 Budget Deficit (millions of dollars) = n/a
Deficit as Percent of State Budget = n/a

Medicaid spending is currently $28 million over budget. Corrections spending growth is running at 8% a year.


New Mexico Department of Finance and Administration

New York
FY 2003 Budget Deficit (millions of dollars) = 2,500
Deficit as Percent of State Budget = 6.3%
FY 2004 Budget Deficit (millions of dollars) = 7,000 to 10,000
Deficit as Percent of State Budget = 17.0% to 24.3%

Governor Pataki in a January 8, 2003 address anticipated a shortfall of up to $10 billion through the end of the 2003-04 fiscal year. The governor suggested the state should cut spending in all areas of the next budget except for public security.

New York State Division of the Budget


Nevada
FY 2003 Budget Deficit (millions of dollars) = 206
Deficit as Percent of State Budget = 10.5%
FY 2004 Budget Deficit (millions of dollars) = 400 to 534
Deficit as Percent of State Budget = 21.2 to 28.2%

A three percent reduction in FY 2003 appropriations was imposed on state agencies by the governor (does not include K-12) at an estimated savings of $37.5 million. The governor is also recommending that $100 million (of the $136.3 million available) be accessed from the rainy day fund when the Legislature convenes in February 2003.

Nevada Budget and Planning Division


Ohio
FY 2003 Budget Deficit (millions of dollars) = 1,941.6
Deficit as Percent of State Budget = 8.4%
FY 2004 Budget Deficit (millions of dollars) = 2,000
Deficit as Percent of State Budget = 9.2%

One suggestion to ease the state's budget crisis is to allow video slot machines at Ohio racetracks, but Governor Taft is opposed to that solution.

State of Ohio Office of Budget and Management


Oklahoma
FY 2003 Budget Deficit (millions of dollars) = 291.7
Deficit as Percent of State Budget = 20.6%
FY 2004 Budget Deficit (millions of dollars) = 800
Deficit as Percent of State Budget = 15.9%

The state implemented across-the-board cuts for an annual reduction of 6.5% ($291.7 million). Additional cuts made during the course of the year included employee layoffs and furloughs and a travel ban. Funding to public schools has been cut $158 million. In a Christmas Eve letter to state cabinet secretaries and department heads Governor Frank Keating warned that "state government will likely face an additional four percent cut next year."

Oklahoma State Election Board


Oregon
FY 2003 Budget Deficit (millions of dollars) = 500
Deficit as Percent of State Budget = 4.6%
FY 2004 Budget Deficit (millions of dollars) = 950 to 1,267
Deficit as Percent of State Budget = 20.4% to 27.2%

All areas of the state budget have experienced spending reductions of some magnitude. Prosecutors will stop handling minor crimes, such as shoplifting.

Oregon Budget and Management Division


Pennsylvania
FY 2003 Budget Deficit (millions of dollars) = 500
Deficit as Percent of State Budget = 2.4%
FY 2004 Budget Deficit (millions of dollars) = 500 to 2,000
Deficit as Percent of State Budget = 2.4% to 9.6%

In December the state announced an immediate spending freeze in many agencies. The state will also take an additional $50 million from the Rainy Day Fund (on top of $700 million), leaving $250 in it.

Pennsylvania Office of the Budget


Rhode Island
FY 2003 Budget Deficit (millions of dollars) = 300
Deficit as Percent of State Budget = 11.2%
FY 2004 Budget Deficit (millions of dollars) = 100 to 130
Deficit as Percent of State Budget = 3.8% to 4.9%

Luckily for Rhode Island, personal income taxes are performing above estimate and sales taxes are on target. Rhode Island's FY 2003 revenue estimate was revised upward by $6 million in November. The state legislature rated the fiscal outlook "optimistic" in late November, 2002.

Rhode Island State Budget Office


South Carolina
FY 2003 Budget Deficit (millions of dollars) = 331
Deficit as Percent of State Budget = 6.1%
FY 2004 Budget Deficit (millions of dollars) = 700
Deficit as Percent of State Budget = 13.6%

Outgoing Governor Jim Hodges has proposed a budget that depends on $295 million from increases in cigarette and gasoline taxes.

South Carolina Budget and Control Board


South Dakota
FY 2003 Budget Deficit (millions of dollars) = 36.1
Deficit as Percent of State Budget = 4.1%
FY 2004 Budget Deficit (millions of dollars) = 54
Deficit as Percent of State Budget = 6.4%

South Dakota Bureau of Financial Management


Tennessee
FY 2003 Budget Deficit (millions of dollars) = 800
Deficit as Percent of State Budget = 8.2%
FY 2004 Budget Deficit (millions of dollars) = 896
Deficit as Percent of State Budget = 37.8%

In late 2001 Governor Sundquist closed a number of state parks. For 2003 and 2004 the state legislature is expected to cut most agencies further to avoid instituting an income tax.

Tennessee Department of Finance and Administration


Texas
FY 2003 Budget Deficit (millions of dollars) = 0
Deficit as Percent of State Budget = 0%
FY 2004 Budget Deficit (millions of dollars) = 2,500 to 8,000
Deficit as Percent of State Budget = 8.2% to 26.2%

It is estimated that Children's Health Insurance Program (CHIP) will need $32 million and Medicaid $122.1 million in additional funding to balance the budget.

Budget, Planning, and Policy


Utah
FY 2003 Budget Deficit (millions of dollars) = 173
Deficit as Percent of State Budget = 4.7%
FY 2004 Budget Deficit (millions of dollars) = n/a
Deficit as Percent of State Budget = n/a

On December 16, 2002 Governor Michael Leavitt addressed the state's budget crisis saying "We have already trimmed $197 million from operating budgets, nearly exhausted our reserves and increased our debt. We are operating a state government with less funds than two years ago although we have more citizens, more unemployed workers, more children, elderly and others in need." The governor pledged not to cut education funds in 2004.

Governor's Office of Planning and Budget

Virginia
FY 2003 Budget Deficit (millions of dollars) = 950
Deficit as Percent of State Budget = 7.7%
FY 2004 Budget Deficit (millions of dollars) = 1,116
Deficit as Percent of State Budget = 9.3%

The main feature on the Web site of Virginia Governor Mark R. Warner is "The Budget Challenge." The site states: "The Commonwealth is presently facing one of the most challenging budget periods in its history. Already undergoing spending cuts in order to balance the 2002-2004 budget, state government now faces an additional revenue shortfall of nearly $1.5 billion." Governor Warner is hoping to generate $83 million through cuts in the Medicaid program.

Virginia's Budget


Vermont
FY 2003 Budget Deficit (millions of dollars) = 38
Deficit as Percent of State Budget = 4.2%
FY 2004 Budget Deficit (millions of dollars) = n/a
Deficit as Percent of State Budget = n/a

In his January 2002 budget address, Vermont's governor Jim Douglas acknowledged that Medicaid services would have to be cut and education spending to be capped. He warned that further reductions are in store.

Vermont Finance and Management


Washington
FY 2003 Budget Deficit (millions of dollars) = 120
Deficit as Percent of State Budget = 1.2%
FY 2004 Budget Deficit (millions of dollars) = 1,000 to 1,334
Deficit as Percent of State Budget = 8.2% to 11.9%

Governor Gary Locke released a budget proposal in December designed to close a projected 2 billion dollar deficit. Cuts include $275 million in the Health Services Account, which funds state medical programs, no cost-of-living increases for state employees or teachers, tuition increases and other measures.

Washington Office of Financial Management

Wisconsin
FY 2003 Budget Deficit (millions of dollars) = 1,117.3
Deficit as Percent of State Budget = 5.0%
FY 2004 Budget Deficit (millions of dollars) = 1,300 to 2,868
Deficit as Percent of State Budget = 11.5% to 25.3%

The outgoing governor estimates the budget shortfall at $2.6 billion, the incoming governor at $12 billion. Already some college campuses have reduced enrollment almost 15% in anticipation of cuts.

Department of Administration, Division of Executive Budget and Financing


West Virginia
FY 2003 Budget Deficit (millions of dollars) = 0
Deficit as Percent of State Budget = 0%
FY 2004 Budget Deficit (millions of dollars) = 200
Deficit as Percent of State Budget = 7.1%

Governor Bob Wise has begun to solicit budget solutions on the state's Web site, saying "This is not going to be politics as usual. We will use this time as an opportunity to change state government. We are now focusing all our time, energy and resources on doing everything we can to avoid layoffs, maintain critical services and keep this state financially sound."

West Virginia Budget


Wyoming
FY 2003 Budget Deficit (millions of dollars) = 0
Deficit as Percent of State Budget = 0
FY 2004 Budget Deficit (millions of dollars) = 0
Deficit as Percent of State Budget = 0

Wyoming reports an optimistic outlook for 2004 and anticipates no deficit.

Wyoming Election Administration

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