November 17, 2008

A Strain on State Budgets

At least 37 states and the District of Columbia have faced or are facing budget gaps totaling $66 billion in the 2009 fiscal year. Most states, which rely on sales, income and property taxes, are seeing a significant drop in such revenues or increases that are below the inflation rate, compared to the same period last year. Unlike the federal government, states are generally required to balance their budgets each year. (Related Article)