Mid-year budget gaps: $26.7 billion

NACo's fellow Big 7 government organization - the National Council of State Legislatures (NCSL) released its latest report today on the state budget situation. We all know it's been bad for years for many states and downright desperate in a few. But, as reported here by Pew Center on the States' online publication stateline.org., things may be getting a tad better.

"While tax revenues seem to be stabilizing after years of poor receipts, at least 15 states still must close budget shortfalls totaling $26.7 billion in the current fiscal year," stateline.org reports. "Next fiscal year, 35 states face deficits as the federal stimulus expires and the strain on social services, particularly Medicaid, goes up."

NCSL's report says Illinois faces the largest proportional shortfall of any state in the current year, at $13 billion, or 47 percent of its overall budget. Other states with substantial mid-year gaps include Missouri, New Mexico and Texas.

Not reported: when states are desperate to fill budget gaps, burdens often shift to counties.