SubscribeState Budget gaps now $97 billion
Still reeling from high gas prices this summer and plummeting retirement savings this fall, Americans will soon be feeling the pinch in other ways — from increased tuition to potentially higher taxes, as states try to close some $97 billion in budget gaps over the next two years.
States will have to find additional spending cuts of $32 billion for current budgets before even beginning to tackle $65 billion in deficits shaping up for the next fiscal year, the National Conference of State Legislatures reported Dec. 4. States have already closed a $40 billion gap since the start of the fiscal year, which was July 1 for all but four states.
"These budget gaps are approaching those seen in the last recession, which were the worst since World War II, and show every sign of growing larger," William T. Pound, NCSL’s executive director said in a statement.
“This is bad,” said Sujit CanagaRetna, senior fiscal analyst for the Council of State Governments. “2001 is going to look like a walk in the park compared to this,” he said, referring to the national recession earlier this decade that forced states to close $264 billion in budget gaps over five years.
My comment: Not to worry I’m sure the Federal government will just print up whatever is required.
John Polomny
The Real Deal
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