Frequently Asked Questions

Question: How are state budgets faring during this current economic downturn?

Answer: The recession is driving state revenues downward. State proceeds from sales, corporate and income taxes all dropped sharply during the latest quarter of fiscal year 2009. In addition to routine spending demands, growing numbers of citizens in need of public assistance are exerting additional pressures on the expense side of state ledgers. Analysts predict that this squeeze will worsen in the year ahead. The National Conference of State Legislatures estimates that states will have to close shortfalls of more than $64 billion in order to balance 2010 budgets. Spending cutbacks and service reductions will affect all areas of state government — including the arts — next year.

For additional Information: To learn more about budget conditions in your own state or the nation at large, consult:

Shifting Economy Keeps States Guessing

State Budget Gaps Balloon to $97 Billion

New National Survey Reveals Escalating Budget Crisis for States

State Revenues Plummet