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State Budget Shortfall Map
The National Conference of State Legislatures State Budget Update from April 2004 contained some good news, and some not so good news. The first line reads "Small improvements are big news for state budgets as they emerge from historically bad fiscal conditions." According to the National Association of State Budget Officers the crisis, which began three years ago, is the worst in 50 years with more states forced to make cuts in legislatively-enacted budgets than ever in the organization's history. At the end fiscal year 2003 states faced a staggering $78.4 billion deficit. Nearly all U.S. states are required by law to balance their budgets a task that has been very hard during the last few years. In recent years states have taken a variety of approaches during 2002 to balance their budgets, reducing Medicaid eligibility, instituting hiring freezes, delaying capital projects, shutting down state parks and furloughing non-violent felons. Districts in seven states have adopted four-day school weeks. A number of states were forced to tap into their rainy day funds. In 2002 eighteen states raised taxes by over 1 percent.
At the end of the 2004 fiscal year things looked brighter with 32 states projecting surpluses after cuts, of course. However, in only 5 states did the surplus even reach 5% of total state spending. For fiscal year 2005, 33 states face gaps they must close for a collective shortfall of $36.3 billion.
The Center on Budget and Policy Priorities has recently released a detailed study about the effect that the federal budget deficit and associated cuts have had on state budgets. "Passing Down the Deficit" contends that "federal policies have cost states and localities more than $175 billion over the four-year course of the state fiscal crisis averaging 8.4 percent of total state general fund budgets during that time." Continued deficits at the federal level, the Center argues, will continue to force states to make hard decisions for years to come. Below, see what the financial situation is in your state and what programs are being curtailed. Additional information for each state comes from state budget offices and state governor's offices.
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