Tornado Alley (PROG)

[n4807g]

Projections suggest the budget shortfall will be worse in 2011 than 2010

Re: I expect another Stimulus Bill sometime in the 1st qtr. 2010 to further fund state budget shortfalls.

"I think there are a few states that might need such a bill - Michigan, Ohio, California, et al - but the majority seem to have lesser (or even zero) budget problems. Personally, I think the 1-year mulligan ought to have gotten California to reexamine it's revenues and expenditures in closer detail, with action plans ready for 2010. For Michigan and Ohio, unemployment is a bitch, so it will be harder for them.

I guess what I'm trying to say is that for the majority of states, I don't think a federal bailout is necessary. For a few, it might be, but it may be small enough that they can fund it without a stimulus bill, but rather by re-appropriating funds from another source. ARRA still has a lot of unassigned dollars...."

http://www.cbpp.org/cms/?fa=view&id=711

Additionally many states are finding out that their revenue projections for the current fiscal year are still too high. Unless they are willing to dramatically raise tax rates again, or dramatically cut expenses 2011 looks to be a more significant problem.