At the annual National Governor Association the mood was bleak. A recent survey 45 out of 50 states have budget deficits. All combined total $18.8 billion stay out of a $87.9 billion short fall.
Expected deficits for fiscal year 2011 is $52. billion and for fiscal year 2021 will be $61 billion.
“The situation is fairly poor for a lot of states around the country. In fact, most states,” Governor Jim Douglas (R-VT) who is the Chair of the Governor Association said at press conference Saturday in Washington.
“What we’re finding out from a fiscal standpoint is that the worst is yet to come,” Douglas said.
All 50 states received some part of the $787 billion stimulus package which used to pare down debt and paid salaries of employees that would other wise laid off.
State economies are struggling with lower tax receipt, large debts and high unemployment.
“Economists have declared the national recession over. But for those who are still unemployed, for those who have lost their homes, it’s clear that as a nation we have a long way to go,” said Douglas.
The state survey found 38 states had lower revenue than what expected.
Reuters has more