States Continue to Feel Recession’s Impact

By Elizabeth McNichol, Phil Oliff and Nicholas Johnson

Updated October 7, 2010

The worst recession since the 1930s has caused the steepest decline in state tax receipts on record. State tax revenues were 8.4 percent lower in the 2009 fiscal year than in 2008, and an additional 3.1 percent lower in 2010, while the need for state-funded services did not decline. As a result, even after making very deep spending cuts over the last two years, states continue to face large budget gaps. At least 46 states struggled to close shortfalls when adopting budgets for the current fiscal year (FY 2011, which began July 1 in most states). These came on top of the large shortfalls that 48 states faced in fiscal years 2009 and 2010. States will continue to struggle to find the revenue needed to support critical public services for a number of years, threatening hundreds of thousands of jobs. States face:

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2 Responses to “States Continue to Feel Recession’s Impact”

  • Loren:

    Maybe the states will seriously look at repealing the 17th amendment. It would go a long way to ending unfunded mandates by the federal government. The Feds first two cuts will be defense and aid to states.

  • Hair Styling Tools:

    hey there, this might be little offtopic, but i am hosting my site on hostgator and they will suspend my hosting in 4days, so i would like to ask you which hosting do you use or recommend?