Free Republic

With the nation’s economy at its healthiest since the Great Recession, a surprising trend is emerging among the states—large budget gaps. An Associated Press analysis of statehouse finances around the country shows that at least 22 states project shortfalls for the coming fiscal year. The deficits recall recession-era anxiety about plunging tax revenue and deep cuts to education, social services and other government-funded programs. The sheer number of states facing budget gaps prompted Standard & Poor’s Ratings Service to call the trend a sort of “early warning.” …

SACRAMENTO, Calif., May 17 (Reuters) - Gov. Arnold Schwarzenegger's new budget plan would balance California's books in the coming fiscal year but some provisions would cause shortfalls to return, with annual deficits above $6.5 billion well into the future, a state fiscal analyst said on Monday. California's budget shortfall could swell to as much as $8 billion in a few years if Schwarzenegger's revised budget plan for the coming fiscal year is passed, Legislative Analyst Elizabeth Hill told reporters. California's longer-term budget outlook has worsened under the new plan compared with Schwarzenegger's initial budget proposal in January, warned Hill, whose...