06/30/2010 - Selling ads on automobile licence plates, taxing sugary soda, borrowing from pensions and billions of dollars of cuts from education are among the measures that lawmakers in US states have considered to help close budget deficits as the next fiscal year begins for most states on July 1.
All but one of the 50 states, Vermont, must balance the budget annually. The litany of cuts, tax hikes and accounting “gimmicks” have become a familiar refrain in state capitols as the recession and housing downturn have dramatically reduced tax revenue for several years now.
“In some states, spending and revenues have not matched for a long time and they really need to rethink that calculation,” says Susan Urahn, managing director of the Pew Center on the States.
Read the entire article US States Face Hard Budget Choices on the Financial Times Web site.