Budget Shortfalls? Think Energy
Monday, December 29, 2008
The states’ fiscal problems are continuing into the next two years. At least 38 states have looked ahead and anticipate deficits for fiscal year 2010 and beyond.[1] These gaps total almost $80 billion — 17 percent of budgets — for the 30 states that have estimated the size of these gaps and are likely to grow as gaps are re-estimated in the next few months
That commentary and the map are from the liberal Center for Budget and Policy Priorities, analyzing the financial difficulties facing states and arguing for federal aid to help state governments.
The few states doing well? They are all energy-producing states, where coal and/or oil production make major contributions to the economy and state tax revenues.
So: Not all energy states are doing well, but all states doing well are energy states. Perhaps a lesson for the federal government, as well.
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