Recession and State Budgets

States face new pinch as stimulus ebbs, By Deborah Solomon, June 23, 2010, Wall Street Journal: “Already-strapped states are about to face a new squeeze as the boost from federal economic-stimulus spending draws to a close and Washington looks increasingly reluctant to widen the nation’s budget deficit. States have long known stimulus funds sent their way early in the recession would taper off in the first half of 2011. But many hoped a rebound in tax receipts would close the gap. While state revenues have rebounded somewhat, legislatures still must grapple with deficits totalling $127 billion over the next two fiscal years, according to the National Association of State Budget Officers. Meanwhile, many lawmakers in Washington, concerned about a U.S. budget deficit that could rise by as much as $11 trillion over the next decade, are opposing more spending…”