K-12 Tax & Spending Climate: States face long slog after recession

Associated Press:

At statehouses around the country, the Great Recession is far from over: It could take years for many states to climb out of the hole and return to pre-downturn spending levels.

An Associated Press examination of 50 balance sheets shows state budgets and bank accounts still ravaged by a drop in tax revenue. Many states are also facing enormous long-term pension and health care obligations. At the same time, the payout of stimulus money from Washington that helped many states in their darkest hours has come to an end.

While some states saw a modest jump in tax collections this spring, the combined revenue projected by the 50 states in the coming fiscal year - $734 billion - is still down by about $34 billion, or 5 percent, from the 2007-08 fiscal year, when the recession began.

Some states are in far worse shape. New Jersey, Nevada, Oregon, Illinois and Louisiana reported deficits that are more than 20 percent of the state general fund.

Posted by Jim Zellmer at June 15, 2011 1:10 AM
Subscribe to this site via RSS/Atom: Newsletter signup | Send us your ideas