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States Ready to ‘Tighten Belts’ In 2010 (USA Today)
States across the nation begin the year facing grim budget shortfalls that could mean a repeat of the service cuts, layoffs or furloughs and higher fees imposed in 2009, a USA TODAY survey shows.
States passed fiscal 2010 general-fund budgets totaling $627.9 billion, 5.4% less than a year earlier, says a study released last month by the National Association of State Budget Officers and National Governors Association.
Despite cuts, shortfalls for the 2010 fiscal year, which in most states began July 1, are $14.8 billion, the study says. The gap in 2011: $21.9 billion.
The liberal Center on Budget and Policy Priorities says new gaps have opened up in at least 39 states’ budgets for the current fiscal year. In all, every state except Montana and North Dakota addressed or still faces budget shortfalls for fiscal year 2010. “Very large” shortfalls likely will last through 2012, says Nicholas Johnson, an author of that study.
“One of the big challenges for (this) year is that states have done most of the easy things,” he says. Another problem: Federal stimulus funds, which helped fill gaps, will soon begin to expire.
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