Study: 44 states face budget deficits in the current fiscal year

Only a few months into fiscal year 2009, 44 states reported this month that they face a combined total of $62.4 billion in budget gaps, according to a report from the National Conference of State Legislatures. The remaining six states either had not finished their legislative session or had resolved their budget gaps. The study also found that 43 states are projecting a combined deficit of $121 billion for next fiscal year and 31 states predicted a gap for fiscal year 2011. Fully 16 of those states estimated a shortfall of $44.5 billion. Since the recession began last year, states have accumulated a budget gap of $281 billion through fiscal year 2011, according to the report. State officials hope that state revenue collections will begin to inch up and that the deficits have peaked, though upcoming revenue forecasts could add to the problem. “During this legislative session, legislators were left with only tough and unpopular options to balance state budgets,” William T. Pound, executive director of the NCSL of Denver and Washington, said in a statement. “The [budget cuts] will be even more difficult in the next two years, given the serious cuts that have already been made. The easy adjustments have already been taken.”