Link to July 9 stateline.org post, "Plunging revenue causes new problems".Excerpt: More states could have the same problem as the summer goes on, specialists say. May and June are the last two months of the 2009 fiscal year for most states, so officials will have to cover those new gaps as well as the shortfalls they are already projecting for the 2010 fiscal year that began July 1. Governors can do that through executive orders or legislatures can take action when they next meet. The solution usually is some combination of spending cuts, tax increases or dipping into reserves.
“I think there will be other states that see gaps in fiscal 2010,” said Elizabeth McNichol, a senior fellow who is tracking state budget issues for the Center on Budget and Policy Priorities. The Washington, D.C.-based think tank advocates policies benefitting low- and moderate-income people.
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