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May 13, 2008 8:34:00 AM CDT

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Economic Blues Take Toll on State Budgets  

Posted Apr 25, 08 1:21 PM CDT in Business    Most Covered

(newser) – The slumping economy will pummel state budgets in the next fiscal year, leaving them at least $26 billion short, according to a survey from the National Conference of State Legislatures. Payrolls fell drastically in March and consumer confidence is low, a double whammy for state tax revenue. "With a few exceptions, state finances are deteriorating, in some cases considerably,” the survey said.

"Whether or not the national economy is in recession—a subject of ongoing debate—is almost beside the point for some states because their fiscal situations have declined so much that they appear to be in recession," the survey concluded.

Source Bloomberg

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Economic Blues Take Toll on State Budgets
States will come up $26 billion short during the next budget year, a national survey reveals.   (Shutterstock)
Economic Blues Take Toll on State Budgets
Penny-pinching is the order of the day in many states, as economic troubles hit tax revenues.   (Shutterstock)
Economic Blues Take Toll on State Budgets
California's Capital Building is seen in this undated file photo. California is facing a $14.5 billion budget shortfall.   (Shutterstock)
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recession  • subprime crisis  • economy  • state governments  • state spending  • budget shortfall  • economy class


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