Bob Williams State Budget Shortfall

Aug 06 2009 ∞

Pilot test federal health care reform on Congress

Federal health reform should be subject to a 4 year pilot program. year 1 - all members of Congress must be enrolled -no exceptions and no alternative health care. Year 2- expand to all federal employees. Year 3-expand to all state legislators. Year 4-expand to all state state employees. Let’s carefully evaluate how this system would work. I imagine Congress would repeal it after a few weeks

Aug 04 2009 ∞

Health Questions to ask your Senator of House Member

During the Congressional recess it is essential that we turn up the heat on Congress. Following are suggested questions to ask your members of Congress. Thanks to John McClaughry of Ethan Allen Institute for the questions.

Attend these meetings and ask the following twelve questions:

1. The bills impose an individual mandate on me to buy health insurance approved by the Federal government. What will happen to me if I don’t go along? Fines? Wage garnishment? Jail? Will these penalties also apply to millions of illegal aliens, or will they apply only to American citizens and legal aliens?

2. The bills impose a mandate on most businesses to pay for employee health insurance containing “essential benefits” approved by the federal government. If the businesses don’t do so, they’ll be required to pay a fine. How many small businesses will shrink their operations, or go under, rather than pay this new penalty?

3. President Obama said that if I am happy with my coverage, I can keep it “no matter what”. Now we learn that I can keep it until my employer changes or drops it, or until I change employers, or until I try to buy individual insurance. Will you stand behind the President’s initial promise, or will you support Congress’s action to break it?

4. The bills contain a provision allowing health insurance plans bargained by labor unions to continue unchanged – while nonunion workers are threatened with loss of coverage. Is this preference for unionized workers a result of Labor’s strong support of Obama and the Democrats in the last election? Do you support the exemption?

5. President Obama has said he won’t support a health care reform bill that will add to our exploding deficit. The Congressional Budget Office says this bill will increase the federal deficit. Will you vote against any bill that fails President Obama’s requirement that it will not add to our deficit?

6. Governors of both parties have strongly objected that the bill’s mandated expansion of Medicaid will put an intolerable fiscal burden on struggling state treasuries and state taxpayers. Will you vote against any bill containing this very costly unfunded mandate?

7. The bill includes provisions for Federally-designed “comparative effectiveness research”. This is intended to require health care providers to deny health care to elderly citizens, people with disabilities, and others the health of whom certain appointed experts think is not worth improving. Will you oppose any bill that contains such a provision?

8. The bill requires that “qualified” health insurance plans include all “essential benefits” determined by federal bureaucrats. Democratic majorities have already voted down amendments to exclude elective abortions from the list of “essential benefits”. That means that for the first time taxpayers will be required to subsidize elective abortions. Will you vote for a bill requiring taxpayer financing of elective abortions?

9. Exploding medical malpractice claims, fueled by the plaintiff’s bar, are driving doctor and hospital malpractice insurance premiums ever upward. Why are there no provisions in any of the bills to ameliorate this problem, which is driving doctors out of practice? Is it because the plaintiff’s bar contributes millions of dollars to the leading sponsors of this legislation?

10. The bill contains a “public option”, a government-run insurance company “to keep the private insurers honest.” Will this government-run company pay taxes, pay for its own revenue collection and marketing costs, and pay market interest rates on its debt? Or will it enjoy government backing that will enable it to undersell its private competitors, swallow up their customers, and become a new “Medicare for Everybody”?

11. Speaking of Medicare, the system is $36 trillion out of actuarial balance and will run out of hospitalization benefit funds by 2017. How will the government-run “public option” insurance company avoid turning into another Medicare basket case? And how will our senior citizens on Medicare continue to get medical services?

12. Finally, if you support this “public option” plan, are you willing to transfer your family and your staff’s families out of the existing Federal Employees Health Benefit Plan, with its choices of many private insurers, into the new government plan? If not, why won’t it be good enough for you?

Jun 23 2009 ∞

How do we wake up Congressional GOP Leadership?

I have been speaking a great deal around the state of Washington and the voters are energized. They are extremely angry at both political parties.

They fear for the future of their country and the free enterprise system. They expected it from President Obama, but they have been gravely disappointed in the lack of leadership and backbone on the part of Republican members of Congress. I have never heard such anger by conservatives and long-time major GOP donors toward the elected Republican members of Congress as I am hearing now.

They wonder why Glenn Beck, Rush Limbaugh, Sean Hannity, and Bill O’Reilly are speaking out more against the Obama agenda than the congressional Republican leadership.

Meanwhile the waste of billions of dollars of taxpayer money continues. Has anyone in the GOP leadership criticized Microsoft for receiving federal stimulus funds for a bridge linking their campuses or for the millions of dollars wasted on “shovel ready” road projects in which blacktop is being laid down quickly (whether it is needed or not) in order for local governments to receive federal funds?

The $300 billion stimulus bill from July 2008 was a failure, and so was the $700 billion TARP in October 2008. Where are the cries by the GOP leadership for oversight hearings or GAO reports? The purposes of HR 1424 (TARP) were to:

· “Protect home values, college funds, retirement accounts, and life savings.” Tell that to many senior citizens who have lost 40 percent of the value of their retirement accounts in the past 16 months or to seniors who have lost a considerable value in their homes.

· “Preserve home ownership and promotes jobs and economic growth.” Look at the homes in foreclosure and unemployment numbers. Only 49% of Americans say home is now worth more than mortgage (Rasmussen Reports May 12)

· “Maximize overall returns to the taxpayers.” The government is doing a great job maximizing a negative return.

· “Provide public accountability for the exercise of such authority.” We have seen that this is a joke. The Federal Reserve apparently cannot account for $9 trillion in off-balance sheet transactions and they seem to have no idea on what the losses are on its $2 trillion portfolio. And their Inspector General appears clueless. Where are the Congressional oversight hearings? How has the $700 billion been spent?

On February 17, 2009, President Obama signed into law the $787 billion stimulus bill that he said would create or save 3.5 million jobs. Since then we have lost 16,000 jobs per day! (Source: House Republican Conference).

Where is the outcry from the elected Republican leadership? Even Republicans who supported some or all of these stimulus measures should be willing to call for proper oversight and accountability procedures.

The people I speak to are tired of the increasing amount of government intrusion into their businesses and lives. 80% of Americans want Government to sell their stake in GM, Chrysler right now (Rasmussen Reports. June 16)

The Republican Congressional Leadership squandered its image by overspending and promoting government bailouts of failed companies. The only way to regain trust — not only in the Republican Party but in our governmental institutions — is for conservative elected officials to act like statesmen. Earn respect by demanding accountability and reform. They need to act now before it’s too late.

Apr 24 2009 ∞

State Budget Shortfall -April 24, 2009

Many states are using the one-time federal stimulus money, accounting gimmicks and raiding non-general funds in order to balance their state budgets. We predict that most states will face multi-billion dollar deficits in the 2010-11 budgets because of this short term thinking.

I have an article in the latest ALEC newsletter discussing how states can balance their budgets without raising taxes. http://www.alec.org/am/pdf/InsideALEC/InsideALECApril2009.pdf

We now have 44 states reporting state budget shortfalls this year. Our research is based on projected state budget shortfalls. States with actual deficits are much fewer than 44 but legislators of both parties allow the bureaucrats to report a shortfall as the difference between the revenue forecast vs. a new spending level (which is adjusted for increased caseloads, inflation and in many cases salary increases). We have not found any state that reports a shortfall as the difference between the current level of spending and the revenue forecast. Thus, most shortfalls are highly inflated.

There is a great Business Week article on state budget deficits. The article relies on the data from the Center on Budget & Policy Priorities. It has a very liberal bent. You need to click on the slide show to get each state.

Alabama- Center on Budget & Policy Priorities estimates a state budget shortfall of $1.2 billion (15% of budget) Newsweek. Gov. Riley cuts K-12 budget by 9%. December 15, 2008.

Alaska-Faces a $2-3 billion state budget shortfall. January 21, 2009

Arizona- Faces a $2.9 billion state budget shortfall AZCentral.com April 21, 2009

California –State faces an additional $737 million state budget shortfall. Bakersfield.com. April18, 2009

Governor Schwarzenegger signs state budget that raises income and sales taxes and makes sharp budget cuts to reduce state budget shortfall. February 21, 2009

Colorado-House addresses $1 billion state budget shortfall. Denver Business Journal. April 17, 2009

Connecticut-State budget shortfall estimated at $8.7 billion over the next two years. The Register Citizen. April 13,2009

Delaware-State budget shortfall for this year is $30.8 million and $750 million for next year. Sussex Countian. April 10, 2009..

Florida-Faces a $3 billion state budget shortfall. Capitol News Service. April 20, 2009

Georgia- State budget shortfall eliminated by cutting $1.5 billion in programs and using $1.3 billion in federal stimulus funds. Actual 2010 budget is $2.6 billion lower than the 2009 budget. Atlanta Business Chronicle. March 30, 2009

Hawaii-Hawaii faces a $1.8 billion state budget shortfall. Star Bulletin. April 15.

Idaho-Governor proposes to use federal stimulus funds to offset state budget shortfall. IdahoStatesman.com. March 12, 2009.

Indiana –Senate uses $823 million in federal stimulus funds to eliminate state budget shortfall. Indystar.com April 9, 2009.

Illinois - Faces a $7 billion state budget shortfall for the next fiscal year. February 4, 2009

Iowa-Faces a $600-700 million state budget shortfall. Chicagotribune.com. Jan. 5, 2009.

Kansas- Kansas faces $328 million 09-10 state budget shortfall. LJWorld.com April 21, 2009

Kentucky-State budget shortfall of $456 million. WKU Herald.com April 9, 2009

Louisiana- Governor uses federal stimulus funds to partially cover state budget shortfall. The Town Talk. March 14, 2009.

Maine- Faces a more than $500 million state budget shortfall over the next two years. January 9, 2009

Maryland –Passes budget that cuts $866 million and uses $1.5 billion in federal stimulus funds. State still expects a $1 billion state budget shortfall next years. Baltimore Sun. April 13, 2009.

Massachusetts-State budget shortfall increases to $3.0 billion. Arlington News. March 4, 2009

Michigan-State budget shortfall for this year is $785 million and for 09-10 budget it is $1.5 billion. Chicago Tribune. April 17, 2009

Minnesota- State budget shortfall is $4.6 billion. Fox 12. April17, 2009

Missouri-State budget shortfall has been reduced to $261 million this year and an estimated $400 million next year. January 23, 2009.

Nevada- -Faces a $3 billion state budget shortfall. KOLO TV.com April 6, 2009.

New Hampshire -Center on Budget & Policy Priorities estimates state budget shortfall of $250 million (8% of budget) Newsweek.

New Jersey- Pay cuts will not solve $3.2 billion state budget shortfall. Labor News April 2009

New Mexico-Faces $500 million state budget shortfall. NewsOK-Nov. 29.

New York – Governor proposes to eliminate $17 billion state budget shortfall with new taxes, fees and use of federal stimulus funds. WWTI March 30, 2009.

North Carolina –Governor proposes to eliminate state budget shortfall by raising cigarette and alcohol taxes; using $2.9 billion in federal stimulus funds and cutting$1.2 billion. Winston-Salem Journal. March 18, 2009.

Senate bill would extend sales tax to services; increase cigarette tax by 15 cents/pack; and increase alcohol excise tax. Bill would also cut individual and corporate income taxes and would reduce sales tax from 6.75% to 6%. Forbes.com April 22, 2009.

Oklahoma-Federal stimulus funds will help solve $900 million state budget shortfall. KTEN.com March 14, 2009. House approves reducing income tax from 5.5% to 4%. Bill goes to conference committee. April 22, 2009.

Ohio-Auditor predicts $8 billion state budget shortfall in 2012-13. Columbus Dispatch. April 15, 2009

Oregon- Faces a $4.4 billion state budget shortfall. KVAC.com April 22, 2009

Pennsylvania - Faces $1.6 billion state budget shortfall.

-Pennsylvania’s state budget shortfall (From July 1 to Oct 31) is $565 million, or 7% below estimate. The administration and appropriations staffers have estimated an end of year deficit of $2 to $3 billion. The Governor has frozen new hires, out of state travel, and new vehicle purchases (estimated to save $300 million). No other budget cuts have yet been proposed. The Republican-controlled Senate leadership has vowed not to raise taxes, but Governor Rendell has said he won’t rule that out, and the state Treasurer stated that “one thing all economists agree upon is that what works during a recession is government spending” – laying the groundwork to fight any spending cuts. The Commonwealth Foundation has identified billions in wasteful spending in the state budget, and is using a “PA Diet Plan” to promote these.

Rhode Island –House Revenue Committee passes bill to eliminate $188 million state budget shortfall. Rhode Island News. March 30, 2009.

South Carolina –State revenue shortfall forces last minute budget cuts. The State. March 19, 2009

Tennessee –Governor uses federal stimulus funds to mitigate state budget shortfall. Chattanooga Times Free Press. March 25, 2009..

Texas –House unanimously approves Texas budget. KXAN.com April 18, 2008.

Utah- Governor Huntsman proposes a budget $1 billion smaller than the current budget to solve state budget shortfall. December 5, 2008.

-Governor Huntsman called a special session in September to address state budget shortfall. The Legislature reduced the budget by $354 million through cuts and shifting funds. Utah is now looking at another $120 million shortfall and the Governor may call another special session.

Vermont- State budget shortfall could be $1 billion over the next four years. WPTZ.com March 17, 2009.

Virginia—$3.7 billion State budget shortfall eliminated by use of $1.6 billion in federal stimulus funs; $1.1 billion in cuts; and other measures. PilotOnline.com March 11, 2009

Washington –Democrat Legislators plan to eliminate $9.3 billion state budget shortfall by taxes, fees, use of pension funds; budget cuts, accounting gimmicks, and use of federal stimulus money. Seattle Times. March 31, 2009

Wisconsin-Governor Doyle signs bill to reduce state budget shortfall by $700 million. February 19, 2009.

-Faces a $5.7 billion state budget shortfall. February 1, 2009.

Wyoming-Faces a $300-325 million state budget shortfall. Trib.com April 2, 2009

Mar 15 2009 ∞

Washington state's use of stimulus funds -

On November 21, House Transportation Chair Judy Clibborn stated, “we’re not impacted by the shortfall in the operating budget. Our projects are moving forward as scheduled.” But at least $150 million of the federal stimulus funds have been used for cost overruns!

On March 5, Governor Gregoire signed the transportation stimulus measure, HOB 1978, to utilize $341.4 million in federal funds. Taxpayers were promised accountability and transparency to “ensure the federal money is directed to the right projects and used in the right way.” Ten days after the legislation was signed we are still trying to find this transparency. It certainly is not on the state website that was set up for this purpose: http://www.recovery.wa.gov/

The Evergreen Freedom Foundation’s (EFF’s) review of the how the money is proposed to be spent indicates that at least $150 million (out of the $341.4) will be used to “backfill” cost overruns for projects that were promised in 2003. In 2003 the gas tax was raised a nickel a gallon and taxpayers were promised that a binding list of projects would be funded and that they were shovel ready. We were told that a new way of doing business was being implemented in the Department of Transportation and we could hold the bureaucrats accountable for results. The verbiage then was “This is truly a jobs program. We need to put people to work and move our economy forward, and the projects in this plan will create family-wage jobs all across the state that can start this summer [1991].

We are unable to determine how much of the remaining funds $191.4 will also be used for cost overruns.

Part of the funds have been used to build a bridge to Microsoft. Somehow this project jumped over other priorities that have been waiting for year for funding. A highway overpass meant to ease congestion around Microsoft’s growing Redmond headquarters will be among the state’s first recipients of federal funding from President Obama’s stimulus plan, raising objections from groups scrutinizing how the $787 billion is spent. http://seattletimes.nwsource.com/html/microsoft/2008857919_microsoftbridge14.html

Six years after the 2003 unfulfilled promises we are hearing the same rhetoric. Meanwhile the 2003 binding list of projects was not binding and the Department of Transportation still is operating in its dysfunctional bureaucratic structure.

Feb 16 2009 ∞

State Budget Shortfall -February 16, 2009

Many states are planning to use the one-time federal stimulus money, accounting gimmicks and raiding non-general funds in order to balance their state budgets. We predict that most states will face multi-billion dollar deficits in the 2010-11 budgets because of this short term thinking.

We now have 42 states reporting deficits (Alaska was added to this report). The Center on Budget & Policy Priorities reports 44. The difference is they report on the difference between what they think should be spend on social services etc and the revenue forecast. Our research is based on projected deficits. States with actual deficits are much fewer than 38 but legislators of both parties allow the bureaucrats to report a shortfall as the difference between the revenue forecast vs. a new spending level (which is adjusted for increased caseloads, inflation and in many cases salary increases). We have not found any state that reports a shortfall as the difference between the current level of spending and the revenue forecast. Thus, most shortfalls are highly inflated.

There is a great Business Week article on state budget deficits. The article relies on the data from the Center on Budget & Policy Priorities. It has a very liberal bent. You need to click on the slide show to get each state.

Alabama- Center on Budget & Policy Priorities estimates a state budget shortfall of $1.2 billion (15% of budget) Newsweek. Gov. Riley cuts K-12 budget by 9%. December 15, 2008.

Alaska-Faces a $2-3 billion state budget shortfall. January 21, 2009

Arizona- Disputes slow progress on solving $1.6 billion state budget shortfall. January 31, 2009.

California –Senate adjourns without state budget deal (still one vote short) to solve state budget shortfall. Legislators must act on 27 bills included in spending package. February 15.

-California’s state budget shortfall has grown to $42 billion through the middle of 2010 (up from $28 billion) Dec. 11, 2008.

Colorado-Colorado has a state budget shortfall of $604 million. December 22, 2008.

Connecticut-state budget shortfall increases to $922 million this year even after latest round of budget cuts. January 23, 2009.

-Current state budget shortfall is estimated to be $193 to $356 million. Shortfall for next biennium beginning July 1 is estimated to be $6 billon. Legislative Session starts Jan.7. Jan. 4, 2009.

Delaware-Center on Budget & Policy Priorities estimates state budget shortfall of $369 million (10.1% of budget) Newsweek.

Florida-Special session closes $2.3 billion state budget shortfall for this year. Another $4 billion state budget shortfall is estimated for next year. January 18, 2009.

-Florida’s budget squeeze spurs talk of tax hikes to solve state budget shortfall. January 19, 2009.

Georgia- Center on Budget & Policy Priorities estimates state budget shortfall of $2.7 billion (12.9%)

-Georgia has a state budget shortfall of between $1.5 billion and $2.5 billion. Jan. 11, 2009.

Hawaii-Hawaii faces a $75 million state budget shortfall this year and $1.8 billion for the next two years. January 27, 2009.Idaho- Governor Otter has asked State Agencies to cut budgets by 1% to solve state budget shortfall. November 26, 2008.

Indiana -faces a $763 million state budget shortfall. December 14, 2008.

-Gov. Daniels budget passes first hurdle to solve state budget shortfall. January 8, 2009.

Illinois - Faces a $7 billion state budget shortfall for the next fiscal year. February 4, 2009

Iowa-Faces a $600-700 million state budget shortfall. Chicagotribune.com. Jan. 5, 2009.

Kansas- Deal is reached on Kansas budget for current year. State faces state budget shortfall of $1 billion for 09-10 budget. Feb 13. Kentucky-

-Faces a $459 million state budget shortfall for the fiscal year that ends June 30, 2009.

Louisiana- -Faces a $341 million state budget shortfall this year (08-09). The Advocate. December 20, 2008.

-Gov. Jindal says his plan will balance the state budget shortfall without raising taxes. January 9, 2009.

- Faces a $1.3 billion state budget shortfall next year l. Forbes. Dec. 1.

Maine- Faces a more than $500 million state budget shortfall over the next two years. January 9, 2009

Maryland -Faces a $2 billion state budget shortfall in 2009-10. Forecast Committee recommends budget not grow by more than 0.7 percent. Daily Record. December 16, 2008.

-Governor O’Malley proposes a budget that is an actual decline in spending over the current budget to deal with state budget shortfall. January 2009.

Massachusetts-Governor Patrick proposes cuts, taxes to cope with state budget shortfall. January 29, 2009.

- Faces a $2.5 billion state budget shortfall this year and $4 billion next year. January 21, 2009.

Michigan-Gov. Granholm’s budget plan to address state budget shortfall. http://www.upnorthlive.com/news/news_story.aspx?id=259464 February 12.

-Centerformichigan.net identifies more than $1.5 billion in savings to deal with state budget shortfall. February 9, 2009

Faces a $917 million state budget shortfall this year and $1.6 billion next year. January 9, 2009

Minnesota- Gov.Pawlenty announces plan to cut $426 million to eliminate 08-09 state budget shortfall. Minnesota Independent. December 19, 2008.

- Faces an estimated $ 5.3 billion state budget shortfall for 09-10. December 10, 2009.

Missouri-State budget shortfall has been reduced to $261 million this year and an estimated $400 million next year. January 23, 2009.

Nevada- -State budget shortfall increases to $2.3 billion. February 8, 2008.

New Hampshire -Center on Budget & Policy Priorities estimates state budget shortfall of $250 million (8% of budget) Newsweek.

New Jersey- N.J. state budget shortfall hits $2.1 billion for this year (2008-09). Current budget is now $32.2 billion. Governor indicates next budget (2009-10) will be $29.5 billion or less! The Daily Journal.com. Jan. 3, 2009.

- Faces a $1.2 billion state budget shortfall this year and $5 billion next. New Jersey News. December 17, 2008.

-Gov. Corzine announces $812 million in spending cuts to solve state budget shortfall. January 5, 2009.

New Mexico-Faces $500 million state budget shortfall. NewsOK-Nov. 29.

New York – Faces a $1.7 billion state budget shortfall this year and $15 billion for 2009-2010. February 2, 2009.

- Gov Patterson proposes 88 new fees and taxes to close a $15.4 billion state budget shortfall. NY Daily News. December 17, 2008.

-Gov. Patterson proposes a 1.1% increase in budget to $121.1 billion. He also proposes a 4% tax on downloaded music for IPODs and 18% on soda. FoxNews. Dec. 17, 2008.

North Carolina -$2 billion state budget shortfall this year means tough decision. Gov. Perdue orders a 7% cut to agency budgets. January 16, 2009.

-Faces a more than $3 billion shortfall (15% of current budget) for 09-10.

Oklahoma-State budget shortfall increases to $600 million for next fiscal year. January 20, 2009

Ohio-Faces a $7.3 billion state budget shortfall. Columbus Dispatch. Dec. 1.

-Governor Strickland trims $640 million from State budget to help solve state budget shortfall. The Plain Dealer. Dec. 20, 2008.

Oregon- Faces a $750 million state budget shortfall through June 30, 2009. FY 09-11 budget is forecasted to have a $2.2 billion state budget shortfall. January 16, 2009.

-FY 09-10 budget is forecasted to have a $1 billion state budget shortfall

Pennsylvania - Faces $1.6 billion state budget shortfall.

-Pennsylvania’s state budget shortfall (From July 1 to Oct 31) is $565 million, or 7% below estimate. The administration and appropriations staffers have estimated an end of year deficit of $2 to $3 billion. The Governor has frozen new hires, out of state travel, and new vehicle purchases (estimated to save $300 million). No other budget cuts have yet been proposed. The Republican-controlled Senate leadership has vowed not to raise taxes, but Governor Rendell has said he won’t rule that out, and the state Treasurer stated that “one thing all economists agree upon is that what works during a recession is government spending” – laying the groundwork to fight any spending cuts. The Commonwealth Foundation has identified billions in wasteful spending in the state budget, and is using a “PA Diet Plan” to promote these.

Rhode Island -Center on Budget & Policy Priorities estimates state budget shortfall of $802 million (24.5% of budget). Newsweek.

South Carolina —Center on Budget & Policy Priorities estimates state budget shortfall of $804 million (11.7% of budget). Newsweek.

Tennessee -Center on Budget & Policy Priorities estimates state budget shortfall of $1.2 billion (10.4% of budget). Newsweek.

-Faces a $1 billion state budget shortfall in the next two years. Tenn.com. December 13, 2008.

Texas –Legislators to tackle $9.1 billion 2010-11 state budget shortfall. January 19, 2009

Utah- Governor Huntsman proposes a budget $1 billion smaller than the current budget to solve state budget shortfall. December 5, 2008.

-Governor Huntsman called a special session in September to address state budget shortfall. The Legislature reduced the budget by $354 million through cuts and shifting funds. Utah is now looking at another $120 million shortfall and the Governor may call another special session.

Vermont- Center on Budget & Policy Priorities estimates state budget shortfall of $122 million (10% of budget) Newsweek.

- Vermont faces a $66 million state budget shortfall. WCAX-TV December 14, 2008.

Virginia—Virginia has a forecasted two year state budget shortfall of $3.2 billion

-Gov. Kaine’s budget proposes deep cuts for difficult times to solve state budget shortfall. Washington Post. December 29, 2008.

- Governor Kaine announced $500 layoffs, a hiring freeze and canceled raises because of a $900 million state budget shortfall.(NCSL. November 2008)

Washington –$5 billion windfall from federal stimulus bill may not even reduce state budget shortfall. February 14.

- Gregoire proposes an almost-balanced no-new-taxes budget to solve state budget shortfall. Evergreen Freedom Foundation. December 18, 2008.

- Gov. Gregoire releases a slimmed-down state budget to deal with a projected $5.6 billion state budget shortfall for FY 09-11

- Gov. Gregoire has ordered two rounds of budget cuts totaling $590 million to deal with state budget shortfall. Seattle Times. November 25, 2008. EFF counters and points out there is no budget shortfall. The revenue forecast for the next two years is $300 million higher than the current budget. What the Governor wants to do is increase spending by $5.1 billion over the revenue forecasts and she calls that a “budget shortfall” (EFF)

Wisconsin-Governor Doyle to release his plan on February 17 to deal with state budget shortfall. February 15.

-Faces a $5.7 billion state budget shortfall. February 1, 2009.

Feb 09 2009 ∞

State Budget Shortfall -February 9, 2009

We now have 42 states reporting deficits (Alaska was added to this report). The Center on Budget & Policy Priorities reports 44. The difference is they report on the difference between what they think should be spend on social services etc and the revenue forecast. Our research is based on projected deficits. States with actual deficits are much fewer than 38 but legislators of both parties allow the bureaucrats to report a shortfall as the difference between the revenue forecast vs. a new spending level (which is adjusted for increased caseloads, inflation and in many cases salary increases). We have not found any state that reports a shortfall as the difference between the current level of spending and the revenue forecast. Thus, most shortfalls are highly inflated.

There is a great Business Week article on state budget deficits. The article relies on the data from the Center on Budget & Policy Priorities. It has a very liberal bent. You need to click on the slide show to get each state.

Alabama- Center on Budget & Policy Priorities estimates a state budget shortfall of $1.2 billion (15% of budget) Newsweek. Gov. Riley cuts K-12 budget by 9%. December 15, 2008.

Alaska-Faces a $2-3 billion state budget shortfall. January 21, 2009

Arizona- Disputes slow progress on solving $1.6 billion state budget shortfall. January 31, 2009.

California -California’s state budget shortfall has grown to $42 billion through the middle of 2010 (up from $28 billion) Dec. 11, 2008.

- California November revenue $1.3 billion below estimate. State may run out of money in February. December 10, 2008.

-Governor vetoes Democrat budget –state budget shortfall continues. January 7, 2009.