by Calculated Risk on 1/17/2011 09:03:00 AM

Writing in the NY Times, Monica Davey reviews the budget situation in several states: Budget Worries Push Governors to Same Mind-Set

In years past, new governors have introduced themselves in inaugural remarks filled with cheery, soaring hopes; plans for expansions to education, health care and social services; and the outlines of new, ambitious local projects.

But an examination of more than two dozen opening addresses of incoming governors in recent days shows that such upbeat visions were often eclipsed by worries about jobs, money and budget gaps.
...
While state revenues — shrunken as a result of the recession — are finally starting to improve somewhat, federal stimulus money that had propped up state budgets is vanishing and costs are rising, all of which has left state leaders bracing for what is next. For now, states have budget gaps of $26 billion, by some estimates, and foresee shortfalls of at least $82 billion as they look to next year’s budgets.

This is a key issue this year - these budget cuts and tax hikes will be a drag on growth and employment ...

Weekend:
• Summary for Week ending January 15th
• Schedule for Week of January 16th