"Across New York, too many families are dealing with a harsh reality: they're broke. So is the state. And we're not alone.
With less income tax revenue from widespread job loss, less sales tax revenue from decreased consumer spending and less property tax revenue from falling real estate values, states have seen record-level budget deficits open up in short order. New York's projected $8 billion budget gap for the 2010-2011 fiscal year, scheduled to balloon to $14 billion-$15 billion when the federal stimulus money disappears -- is second only to California's, but is symptomatic of the large majority of states.
In fact, the Center for Budget and Policy Priorities estimates that by the end of fiscal years 2010 and 2011, the 50 states will have faced a combined budget shortfall of at least $350 billion. Since virtually every state must balance its budget, deficits mean that states are forced to cut spending on important services or raise taxes."
With less income tax revenue from widespread job loss, less sales tax revenue from decreased consumer spending and less property tax revenue from falling real estate values, states have seen record-level budget deficits open up in short order. New York's projected $8 billion budget gap for the 2010-2011 fiscal year, scheduled to balloon to $14 billion-$15 billion when the federal stimulus money disappears -- is second only to California's, but is symptomatic of the large majority of states.
In fact, the Center for Budget and Policy Priorities estimates that by the end of fiscal years 2010 and 2011, the 50 states will have faced a combined budget shortfall of at least $350 billion. Since virtually every state must balance its budget, deficits mean that states are forced to cut spending on important services or raise taxes."