Report: 46 States Face Budget Deficits Adding Up to $112 Billion

Friday, 25 Jun 2010 04:03 PM
By: Dan Weil

It’s not just the federal budget deficit that’s exploding.

States haven’t been able to cut their spending or increase tax revenue either. The Center on Budget and Policy Priorities estimates that 46 states now face deficits that total $112 billion for the year starting July 1.

That number will likely grow, as revenue continues to deteriorate, the center says. So the total could rise to $180 billion by next June 30.

And the problem isn’t going away the following year, when the red ink could total $120 billion, the center explains.

“As we look ahead to 2011 and beyond, even as the economy appears to be moving in the direction of recovery, states’ fiscal prospects remain extremely weak,â€