States face budget shortfalls in 2009

Twenty states face a combined budget shortfall of at least $35 billion for 2009, according to analysis by the Center on Budget Policy & Priorities. Another 8 states will likely have budget problems next year or the year after. Here's a graph:



The impulse by some state leaders is to slash state spending, but some experts warn that could be disastrous for the economy if multiple states lay off state workers and cut off help to those in need at the same time that private spending is falling. Because most of the states facing shortfalls are currently in session, it'll be interesting to see how they handle their budget crises individually.