Pinched States Wrestle With More Cuts
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Pennsylvania state workers may go without paychecks. Georgia is mowing its highway shoulders less. And Arizona is planning to sell its House and Senate buildings.
Arizona may sell its House of Representatives building, shown in June.
.Just a few weeks after many states struggled to balance their budgets for the new fiscal year, plunging tax revenues are forcing more cuts.
Dwindling taxes are also spurring ugly political fights in states such as Pennsylvania and North Carolina that haven't yet passed balanced budgets, as is required by law in all states except Vermont. Arizona officials announced a tentative budget deal late Wednesday.
At least 10 states already are projecting new budget gaps totaling more than $3 billion, on top of $139.2 billion in shortfalls legislators across the country had patched up before the fiscal year began July 1, according to the left-leaning Center on Budget and Policy Priorities. In addition, California adopted spending cuts and other measures this week to close its remaining $24 billion shortfall.
.Normally, states wouldn't be grappling with budget gaps until they begin planning for the next year's budget, said Elizabeth McNichol, a senior fellow at the Washington-based think tank.
But the recession has states closely watching revenues that continue to tumble, said
