Thursday, October 7, 2010

Facing a revenue crisis, Colorado is not alone

State revenues are falling like a ...
Colorado's budget troubles are from unique. Across the nation, 46 states had to cut services to account for a combined $125 billion shortfall in fiscal year 2010-11, which began July 1 for most states including Colorado.

The shortfall got even worse in Colorado, five other states and the District of Columbia after their governing bodies passed 2010-11 budgets. Colorado must close a mid-year shortfall of $257 million, or 3.6 percent of the state budget, thanks to lower-than-expected revenues. That looks small compared to the mid-year shortfall in Washington, $770 million or 4.8 percent of the state budget.

The Center on Budget and Policy Priorities highlighted the numbers in a report issued today, "States continue to feel recession's impact."

"The fact that the gaps have been filled and budgets are balanced does not end the story," the center said. "Families hit hard by the recession will experience the loss of vital services throughout the year, and the negative impact on the economy will continue."

Visit our website for more analysis of Colorado's state budget from the Colorado Fiscal Policy Institute.

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