- Days left
Forty-three states already face shortfalls for their budgets this year and/or next year. The Center on Budget and Policy Priorities projected that nearly all states will face shortfalls by 2010. It expects the deficit shortfall to total over $100 billion by 2010.

So what does all this mean for you? Certainly not lower taxes, but you could end up losing services. Here's some of the cuts predicted (or already happening):

* Health care: 17 states have already made cuts or are considering cuts to programs for low-income children and family health programs.

* Education: 16 states are thinking about cutting K-12 and early education spending. 21 states have implemented or proposed cuts to public colleges and universities.

* 20 states have implemented or proposed cuts to the state workforce -- in other words more layoffs



In many states, it's not only the state governments in trouble. County governments also are struggling to find funding for education, as well as police and fire departments as property tax revenues drop. Many are struggling with keeping up foreclosure homes because the banks that own them are not taking care of the property, which can increase the rodent population and other health problems.

Barack Obama has promised to work with the states on an economic recovery package -- bailout in most people's minds. He met with the National Governor's Association in Philadelphia and promised help. Expect to see the states added to the massive bailout passed by the new Congress in January. Democrats plan to have the bailout ready for Obama's signature on inauguration day. Given the rapid financial decline and job loses, that may even be too long to save jobs and needed state services.

Lita Epstein has written more than 25 books including "Working After Retirement for Dummies" and "Surviving a Layoff."

Increase your money and finance knowledge from home

Economics 101

Intro to economics. But fun.

View Course »

Managing your Portfolio

Keeping your portfolio and financial life fit!

View Course »

TurboTax Articles

8 Things You Think Are Tax Deductible That Aren't

There?s a fine line between looking to save money on your taxes and taking deductions that will raise eyebrows at the Internal Revenue Service. Some taxpayers are tripped up by expenses that they assume are tax deductions, but don?t qualify under IRS guidelines. Here are a dozen items that can lead to unpleasant surprises in case of an audit.

9 Things You Didn't Know Were Tax Deductions

Few realizations are more painful than realizing that you forgot to include a tax deduction that would have lowered your tax bill or increased your tax refund on your tax return. Here are some tax deductions that you shouldn't overlook.

A Comparative Look at State Taxes

Ever wondered which state has the highest gas tax or the lowest overall tax burden? Interact with the infographic below to compare income tax, property tax, and other taxes by state.

Add a Comment

*0 / 3000 Character Maximum