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. (Read more recession stories.)