You no doubt have heard of the
troubles California lawmakers are having with their budget.
But the issue is more widespread than California. At least 22 states are reporting big problems.
The Los Angeles Times reports:
"States have been confronted with bad economic circumstances in the past, but never so many states, all at once," said William T. Pound, executive director of the National Conference of State Legislatures.
The revenue pools are shrinking for a number of reasons: Rising layoffs are cutting into payroll taxes. The credit crisis and housing slump are affecting taxes levied on real estate deals. Sales taxes are shrinking as shoppers worried about the economy stay home.
Every state in the union but Vermont legally requires a balanced budget. So state governments have begun cutting.
- In Utah, Gov. Jon Huntsman Jr. called the Legislature back for a special session last month to slash $270 million with an across-the-board 3 percent budget cut.
- Virginia Gov. Tim Kaine this month disclosed a sudden $900-million budget gap and announced 500 layoffs, the suspension of 2 percent raises for state workers and a hiring freeze.
- Georgia, faced with a $2-billion shortfall, is contemplating cuts of up to 10 percent at state agencies. Lawmakers are also discussing eliminating funding for the state's Music Hall of Fame in Macon.
More examples:
