A Snapshot on State Budget Shortfalls and Pension Liabilities
If you follow state finances, then you already know that most states are in trouble. But just how dire is the situation for states around the country?
“More than 40 states are projecting billions of dollars in budget shortfalls for fiscal 2012,” according to a new Washington Post feature entitled, States in Crisis. However, as the article explains, most states have a balanced-budget law, which means that the gap must be closed before a state can adopt its proposed budget for the following year.
Based on data from the Center on Budget and Policy Priorities, Center for Retirement Research at Boston College, and the National Conference of State Legislatures, the Post has published a snapshot report showing states facing the largest budget shortfalls, both in dollar amount and as a percentage of their 2012 budget.
On a percentage basis, Illinois and Nevada top the list, each with a 45 percent shortfall, followed by New Jersey, Texas, and California.
This comprehensive and timely report also includes tabs that show pension liabilities, proposed budget cuts, and party in power for each state.