AP Exclusive: State budgets slide

[Lone_Star_Dem]

Source: Associated Press

For the third time in a month, an analysis of state finances is warning that budget deficits and spending cuts are on the way.


Thirteen states say they could face shortfalls for the fiscal year that begins July 1 in most states, including large states like California and New York.

The deficits could reach at least $23 billion, according to an analysis by the Center on Budget and Policy Priorities released Tuesday.

The report says another 11 states expect problems with their budgets over the next two years, suggesting a return to the bleak economic outlook states faced at the beginning of the decade.

"We're really teetering on the edge," said Iris Lav, the center's deputy director. "With the deficits this large already before there's actual evidence we're in a recession, that seems quite serious."



Read more: http://news.yahoo.com/s/ap/20071218/ap_on_re_us/state_finances