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Budget shortfalls during the current fiscal year have opened up in 41 states, and things might get even worse for FY2011. It's the worst of all worlds: Taxes are depressed by high unemployment and lower consumer spending, and even as the economy improves, tax collections are certain to lag. A report by Center on Budget and Policy Priorities also points out that assistance from the federal stimulus will probably run out before states are able to recover. When looking at the midyear budget gaps on a percentage basis, California is far from the worst off. Of course, the state's actual budget gap, at $6.6 billion, is highest in the nation, followed by Illinois at $5 billion.
STATE PERCENTAGE OF BUDGET GAP
Arizona 19.7%
Oklahoma 15.1%
Illinois 14.3%
Rhode Island 13.0%
Kentucky 12.9%
Nevada 12.5%
New Mexico 11.8%
Virginia 11.1%
Hawaii 10.4%
Washington 9.0%
Iowa 9.0%
Mississippi 8.8%
Georgia 8.1%
Colorado 8.0%
Missouri 7.7%
South Carolina 7.6%
Kansas 7.5%
New Jersey 7.4%
California 7.2%
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.