States and the Recession
Recession Continues to Batter State Budgets
At least 46 states struggled to close shortfalls that totaled $121 billion when adopting budgets for the current fiscal year (FY 2011, which began July 1 in most states). These came on top of the large shortfalls that 48 states faced in fiscal years 2009 and 2010.
Federal assistance has reduced the extent of state spending cuts and state tax and fee increases needed to close the shortfalls. But it now appears likely the assistance will end before state budget gaps have abated. If states get no further federal assistance, the steps they will have to take to eliminate deficits will reduce aggregate demand and likely will take a full percentage point off the Gross Domestic Product. That, in turn, could cost the economy 900,000 jobs next year. Read more
Deficits & Debt
Fiscal Commission Should Not Focus On Gross Debt
A call by several members of the President’s Commission on Fiscal Responsibility and Reform for the commission to focus on the federal government’s gross debt, rather than debt held by the public, is misguided and could inhibit efforts to address the nation’s long-term fiscal challenges. Read more
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- Federal Budget Analyses
New From the Center
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The Food Stamp Program Is Effective and Efficient
July 23, 2010
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Off the Charts Blog Post: In Case You Missed It...
July 23, 2010
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Podcast: The Need for Extending the TANF Emergency Fund
July 20, 2010
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Using TANF Emergency Funds to Help Prevent and Address Family Homelessness
July 13, 2010
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Childless Adults Who Become Eligible for Medicaid in 2014 Should Receive Standard Benefits Package
July 6, 2010
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Center in the News
Senate expected to vote to restore unemployment benefits
USA Today
July 21, 2010
U.S. debt: When is it safe to start cutting?
CNNMoney.com
July 21, 2010
States Caught in Cycle of Cuts
Chattanooga Times
July 17, 2010
Elderly and Disabled Put at Risk by Cuts in Home Care
New York Times
July 16, 2010
Analysis: BP disaster will slow Gulf states' recovery
Reuters