Grim News For State Budgets

Report Read time:
Grim News For State Budgets

Many states are greeting 2008 with a major budget hangover and are looking for relief from falling home sales, higher energy prices and reduced sales-tax collections after two years of overflowing coffers.

Red ink was showing up in as many as 20 state ledgers as the year began, and if the country dips into a recession, the number of states projecting deficits would certainly grow. "Clearly, it's a little more gloomy than it was once was," Raymond C. Scheppach, executive director of the National Governors Association, said.

The stalled housing market is hurting states across the board, but it's more severe for states such as Arizona, California, Nevada and Florida that rely heavily on real-estate taxes. A drop in home sales and prices mean states get a smaller cut — of sales taxes as well as real-estate-related levies — because most people who buy homes also purchase new appliances and carpeting and spend big money on home improvements.

Read the full report Grim News For State Budgets on Stateline.org's Web site.

America’s Overdose Crisis
America’s Overdose Crisis

America’s Overdose Crisis

Sign up for our five-email course explaining the overdose crisis in America, the state of treatment access, and ways to improve care

Sign up
Quick View
America’s Overdose Crisis

America’s Overdose Crisis

Sign up for our five-email course explaining the overdose crisis in America, the state of treatment access, and ways to improve care

Sign up

MORE FROM PEW

Getty Images Small Businesses in PA Support State Retirement Savings
A person wearing a helmet and harness climbs a ladder on a metallic wind turbine tower. How States Are Advancing Clean Energy
Six workers secure a large blue tarp on the roof of a two-story condominium under a cloudless blue sky. In the foreground is a badly damaged black SUV, along with large branches and pieces of homes—evidence that a strong storm recently struck. Disaster Resilience Efforts Vary Widely Among States
A long and wide wooden pier extends into a large body of water from a shoreline with a mix of low-rise buildings, houses, and trees. Two people are walking on the pier in the distance. Two other piers are visible in the background, as is a faraway mountain. WA Takes New Approach to Help Locals Boost Climate Resilience
Composite image of modern city network communication concept

Learn the Basics of Broadband from Our Limited Series

Sign up for our four-week email course on Broadband Basics
Quick View

How does broadband internet reach our homes, phones, and tablets? What kind of infrastructure connects us all together? What are the major barriers to broadband access for American communities?

Pills illustration
Pills illustration

What Is Antibiotic Resistance—and How Can We Fight It?

Sign up for our four-week email series The Race Against Resistance.
Quick View
Pills illustration

Antibiotic-resistant bacteria, also known as “superbugs,” are a major threat to modern medicine. But how does resistance work, and what can we do to slow the spread? Read personal stories, expert accounts, and more for the answers to those questions in our four-week email series: Slowing Superbugs.