off the charts
POLICY INSIGHT
BEYOND THE NUMBERS

The Latest on State Budgets

Most states started their 2011 fiscal year on July 1, and we’ve updated our analysis of the budget shortfalls — that is, the gaps between revenues and spending — that states closed when adopting their budgets.  As the map shows, nearly every state faced a shortfall for 2011; in 18 states, the shortfall exceeded a fifth of the state’s spending.
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Three states haven’t yet finalized their 2011 budgets:  Michigan (whose fiscal year begins October 1), California, and New York. By the time the fiscal year ends, we project states will have closed more than $140 billion in shortfalls for 2011, not counting the roughly $40 billion in Recovery Act assistance they’ll have for the year.  Those shortfalls come on top of the roughly $200 billion in shortfalls that states closed in fiscal years 2009-2010 combined (again, not counting Recovery Act assistance). For 2012, states face an estimated $120 billion in shortfalls, and they’ll receive virtually no Recovery Act assistance, the vast majority of which will have expired.