25 states face budget shortfalls
The Center on Budget and Policy Priorities reports today that the potential budget shortfalls in 25 states total about $40 billion. With tax revenues down and expenses up, some hard-hit states have enacted hiring freezes. Janet Babin reports.
A job seeker looks at a job listing board. (Justin Sullivan/Getty Images)
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Scott Jagow: There is one area of the employment picture that's not so bright. A new report says state governments are really short on cash at the moment. Marketplace's Janet Babin reports from North Carolina Public Radio.
Janet Babin: The report from the Center on Budget and Policy Priorities found that 25 states face budget shortfalls totaling about $40 billion. Revenues from sales and corporate taxes have slowed with the cool economy, and expenses are on the rise. But unlike the slowdown in 2001 and 2002, the Center's Iris Lav says, the housing crisis has also taken a toll this time.
Iris Lav: States that have the highest number of foreclosures are the states that are in the worst fiscal trouble. For the states that are particularly hard hit, this could be very prolonged.
The state budget freefall is relatively broad based. But with oil, food and commodity prices scaling new heights, states with energy and food resources are holding their own. Texas, Alaska, Iowa and Kansas are some of the standouts. Some states that are hurting have enacted hiring freezes to help balance the books.
I'm Janet Babin for Marketplace.
