Finances of U.S. States Called…

Finances of U.S. States Called Worst Since World War II

Plunging tax collections and soaring medical costs have created the worst fiscal problems for states since World War II, the National Governors Association said today.

Governors and state budget officers said the fiscal condition of the states was more dire than the condition of the national economy.

“Nearly every state is in fiscal crisis,” the governors said in a new survey of the states.

With many states already halfway through fiscal 2003, about 23 plan to cut enacted budgets by a collective $8.3 billion. That figure did not include California, where Gov. Gray Davis plans to present a plan early next month to cover a $21 billion shortfall.

Actually, the 21 billion dollar deficit for California is now considered to be way too low.