State Budget Deficits Increase Broadly

The news is grim about the economy from the perspective of state and local governments. Most states are looking at budget deficits for the upcoming year and probably beyond into 2010 and 2011. Most states will respond with cuts in social services programs, particularly for children, the poor, and seniors. Transportation projects, some desperately needed, will be shelved. There is likely to be layoffs of public employees, most likely to be ones that have daily contact with the public and will result in poorer and longer waits for service. What will not happen is pay cuts for executive branch officials as well as other highly paid bureaucrats. And is some states, the spectre of tax increases looms in spite of the overall downturn and malaise across the nation.
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http://www.nytimes.com/2008/11/17/us/17fiscal.html
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http://www.csmonitor.com/2008/1114/p01s05-usec.html
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