Nearly Half of States Expect to Confront Big Budget Gaps

With the nation’s economy at its healthiest since the Great Recession, a surprising trend is emerging among the states — large budget gaps

ATLANTA—With the nation’s economy at its healthiest since the Great Recession, a surprising trend is emerging among the states — large budget gaps.

An Associated Press analysis of statehouse finances around the country shows that at least 22 states project shortfalls for the coming fiscal year. The deficits recall recession-era anxiety about plunging tax revenue and deep cuts to education, social services and other government-funded programs.

The sheer number of states facing budget gaps prompted Standard & Poor’s Ratings Service to call the trend a sort of “early warning.”

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