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Gov. Chris Christie is making good on his promise to get tough with New Jersey's $2.2 billion budget gap -- by taking aim at one of the drivers of the state's out-of-control taxes: school budgets. Under Christie's budget, New Jersey's 605 school districts will see their state aid reduced by 5 percent of their last budget. That trims state spending by $820 million, forcing school districts to make deeper cuts or raise property taxes. If it stopped there, Christie's one-time aid cut would do nothing but aggravate property-tax payers. But he's also seeking a constitutional amendment on the November ballot...

<p>Over the last two budget cycles, every state except North Dakota has had to close a budget gap. But a handful of states stand out for the depth of their fiscal problems. For 2010, seven states had budget gaps totaling more than 25% of general fund spending, as measured by the Center on Budget and Policy Priorities. Of these, six have a clear story about how they ended up in such a mess.</p>

Fiscal Situation of 50 States: Combined Budget Gaps Estimated at $350 Billon for 2010 and 2011. Posted by mybudget360 in Employment, bailout, budget, economy, government, income, monetary policy0 Comments It is simply stunning that 44 states are facing shortfalls either for this fiscal year, or will come up short in 2010 or 2011.  This puts virtually the entire country in a difficult financial situation.  It is hard to understand how the media feels that the federal government is somehow better able to get money from people than states.  The federal government’s largest income source is the federal income tax; yet...

As large as it is, California's projected budget deficit may be only the third worst among the states according to a new survey by the National Conference of State Legislatures. Arizona, with a projected 24.2 percent deficit next year and New York at 20 percent are deeper in the hole than California at 18 percent, the NCSL survey found. In terms of actual dollars, however, California easily leads the pack. Overall, NCSL says, states face $97 billion in additional budget deficits over the next 18 to 24 months and California, at $28 billion and growing, approaches a third of the...

California faces a massive deficit even higher than projected in recent weeks - $11.2 billion this fiscal year -- Senate President Pro Tem Don Perata said Wednesday. Without immediate intervention, the nightmare could total an additional $13 billion next fiscal year, according to Perata, citing numbers he said came from the governor's office. The Oakland Democrat said the budget gap cannot be bridged by cuts alone, and that he supports raising revenues by restoring vehicle license fees and taxing offshore oil production. Together, the two tax proposals would generate about $7 billion per year - though considerably less in the...

SACRAMENTO – Seven years of deficits have left the state budget so far out of balance that a Republican legislative leader is saying that closing a huge budget gap with cuts alone is unworkable. Senate Republican leader Dave Cogdill of Modesto said he remains staunchly opposed to tax increases and is now proposing that the state borrow – possibly from funds for local government, transportation and other programs – and quickly repay the loans with money from bonds backed by the lottery. “What we would like to do is see the state get its spending in line with its revenue,”...

Faced with a huge budget deficit, Gov. Arnold Schwarzenegger is having to scale back his ambitions this year and will be forced to resurrect old ideas during Tuesday's State of the State address. Aides say he plans to renew his push for health care reform, while making a plea for budget reforms he has tried twice before but failed to achieve. The governor's strategists hope the Democrats' alliance with Schwarzenegger late last year over a plan to expand health coverage to millions of uninsured Californians will prevent them from launching an all-out war over the deep budget cuts he is...

SACRAMENTO -- The state Department of Finance reportedly has increased the estimate of the state budget shortfall to $14 billion over the next 18 months, up from a $10 billion estimate by the Legislative Analyst last month. Gov. Arnold Schwarzenegger is briefing legislative leaders on the new calculation made by Finance as the administration works on a proposed budget for the new fiscal year beginning on July 1. "I am not confirming or denying anything," said H.D. Palmer, the Finance spokesman. "We are not going to comment until the governor has had the opportunity to brief legislative leaders and hear...

SACRAMENTO — The state budget Gov. Arnold Schwarzenegger proposes in January will show that the shortfall has worsened substantially in recent months, administration sources say, and will force him to propose deeper spending cuts than previously expected. The ballooning gap reflects Schwarzenegger's limited success at reining in spending. State prisons are over budget, Indian casinos are generating less cash than expected and the governor's proposal to raise $460 million by diverting a share of punitive damages from civil lawsuits to the state has fallen flat. And a plan to borrow $800 million to pay the state's contribution into the pension...

SACRAMENTO – If voters reject Gov. Arnold Schwarzenegger's $15 billion fiscal-recovery bond measure in March, his administration said yesterday, a backup bond plan would be smaller than originally thought and would leave a larger budget gap. The governor's top budget aide, Donna Arduin, notified legislators yesterday that the amount of the backup bond, if it survives a court challenge, would drop from $10.7 billion to $8.6 billion. Arduin said the amount of the bond is determined by the deficit at the end of the fiscal year last June, and the deficit has recently been recalculated to be about $2 billion...

<p>SACRAMENTO - Republican resolve to resist new taxes could lead to a budget without sales or income tax increases. But Californians will probably pay more to camp at state parks, fish for striped bass and file for divorce.</p> <p>Senate Democratic budget writers have compiled a patchwork of more than $700 million in new and increased fees on everything from fire protection to phone calls -- a small step toward plugging the state's $38.2 billion shortfall.</p>

<p>GOVERNORS always are presumed to want to be president, but the longing must be especially strong for Gray Davis right now.</p> <p>In the last five years, California has gone from the largest budget surplus in its history to the largest shortfall, a decline trumpeted by Republicans as proof of the governor's fiscal incompetence.</p>

<p>SUGGESTION to Gov. Gray Davis on the $21 billion shortfall predicted for next year's budget: Ask for a recount. Of the Nov. 5 election. You never know. If only 200,000 votes change sides, Bill Simon will be the one up to his neck in budget quicksand.</p>

<p>SACRAMENTO - For the second year in a row, California faces a yawning budget gap of more than $20 billion -- a shortfall that could lead to higher income and vehicle taxes, and cuts to social services and school reading programs.</p>