Top 10? The ten states facing the biggest budget holes

California tops the list of the 10 states in the deepest financial hole. But not by much. Arizona is a close second. (For more on the state and local budget crisis, higher taxes, and the effect on the economic recovery see my post http://jubakpicks.com/2009/11/10/will-rising-state-taxes-sink-the-recovery-in-2010-and-then-there-are-coming-federal-tax-increases-in-2011-and-beyond/ )

The Pew Center on the States put together the list by ranking states on the percentage change in revenue from the first quarter of 2008 to the first quarter of 2009 and by the size of the budget gap for fiscal 2010—that the fiscal year that ends in June 2010 for many states—creating by those drops in tax revenue. (And by looking at other factors not included in the table below. To see more follow this link to the full study http://www.pewcenteronthestates.org/uploadedFiles/wwwpewcenteronthestatesorg/BeyondCalifornia.pdf )

Here’s the list:

1. California          16.2% drop in tax revenue      49.3% size of gap
2. Arizona              16.5% drop                                   41.1% gap
3. Rhode Island   12.5% drop                                   19.2% gap
4. Michigan           16.5% drop                                   12% gap
5. Oregon               19.0% drop                                   14.5% gap
6. Nevada               1.5% increase                             37.8% gap
7. Florida               11.5% drop                                   22.8% gap
8. New Jersey      15.8% drop                                   29.9% gap
9. Illinois               10.9% drop                                 47.3% gap
10. Wisconsin        11.2% drop                                  23.2% gap

The average for all 50 states, according to the Pew Center, is an 11.7% drop in tax revenue and a 17.7% budget gap.

3 comments

• annieandjack on 12 November 2009

  Well this is what happens when people demand more services from state governments than they are willing to pay for and when the politicians care more about being re-elected than either raising taxes and/or cutting services.
• mp3106 on 12 November 2009

  so true. And then be on a school board and try to explain to people why you have to cut everybodys budget.
• robert1234 on 12 November 2009

  Maybe we could cut the far rich pay checks of those government employees for a start. I have a sister, 125,ooo a year, I asked her what she does for the money, she said, ” I read the news paper, give people breaks, and go to meetings.”

  Then maybe we could line all of them up, and fire one in every three, and I’ll bet nobody will know the difference. ER aah… except that maybe my property taxes would go down.