State Budget Crisis

New Fiscal Year Brings Painful Spending Cuts, Continued Budget Gaps In Almost Every State

“The 2010 fiscal year begins for most states July 1.  It brings an austere continuation of recession-driven cuts in essential services and poor prospects for improvement through 2011, according to a series of updated reports on state budget conditions.”  Read press release

Updated Reports in the Series:

  • State Budget Troubles Worsen
    “At least 48 states addressed or are facing shortfalls in their budgets for the upcoming year totaling $166 billion or 24 percent of state budgets….  Aggregate gaps through 2011 likely will exceed $350 billion.”
     
  • Tax Measures Help Balance State Budgets
    “… Twenty-five states this year have enacted tax increases.  Another 12 states are considering similar measures.”
     
  • An Update on State Budget Cuts
    “At least 39 states have imposed cuts that hurt vulnerable residents including health care, services to the elderly and disabled, K-12 education, higher education, and other areas.”
     
  • Federal Fiscal Relief for States Is Working as Intended
    “The federal aid is enough to close, on average, roughly 30-40 percent of state budget shortfalls.” 

Related:

More: State Budget and Tax Analyses

Climate Change

New EPA, CBO Estimates Refute Claims That House Climate Bill Would Impose Large Costs on Households and the Economy

New EPA and CBO analyses demonstrate that the costs of fighting greenhouse gas pollution are modest and manageable, decisively refuting opponents’ claims that reducing emissions would cost the average household several thousand dollars a year.

EPA estimates that the average cost per household of the climate bill coming to the House floor would be $80 to $111 per year. CBO estimates that if the policies the bill calls for in 2020 were already in place, the net annual economy-wide cost would average $175 per household in 2010.

CBO estimates that, on average, low-income households would not suffer any financial loss.

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