Growing Pressures on State Governments Nationwide

The recession and the housing mortgage crisis are having a strong impact on a number of states and their governments. The effects are resulting in a decline in state revenues, causing legislative bodies to scramble to balance state budgets. The problems seems to be greatest in states having the most distress with housing foreclosures and falling home values. States that rely on sales tax revenue instead of income tax revenue seem to be having struggles as well. Among the 25 states most strongly under the gun include California, Rhode Island, New York, Pennsylvania, Nevada, and Arizona. Not surprisingly, states seeing little or no impact on theur budgets are largely located where home foreclosures have been lessor in numbers, such as in the upper Midwest, Northern Rockies, and Pacific Northwest where energy development and agriculture are doing well.

http://www.nytimes.com/2008/03/17/us/17fiscal.html?ref=todayspaper&adxnnlx=1205748045-a6HFDmCF/Gf7qRZxg0HRGg&pagewanted=all

http://www.trib.com/articles/2008/03/17/news/breaking/doc47debb1e7bb2b698064711.txt

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