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State Budget Crises

October 3, 2003 • Volume 13, Issue 34
Can the states get back in the black?
By William Triplett

Introduction

California residents call for the recall of Democratic Gov Gray Davis at a rally in Sacramento on Feb. 22, 2003. Many say he mishandled the energy crisis and the state budget. The recall election will be held on Oct. 7.  (AP Photo/Rich Pedroncelli)
California residents call for the recall of Democratic Gov Gray Davis at a rally in Sacramento on Feb. 22, 2003. Many say he mishandled the energy crisis and the state budget. The recall election will be held on Oct. 7. (AP Photo/Rich Pedroncelli)

States are slashing health-care services, laying off police officers, releasing prisoners early and taking other drastic steps to cope with the worst budget deficits in 50 years. In addition to cutting services, about half the states have raised taxes and fees, although strong anti-tax sentiments have blocked some of the efforts. Experts blame the deficits on everything from the stumbling economy to the recent federal tax cuts to the states' heavy spending during the 1990s boom years. The red ink is expected to persist in the years ahead, but the experts also disagree about how best to get back in the black. Proposals range from privatizing state and local services to radically cutting back on Medicaid services for the poor. Meanwhile, California voters go to the polls on Oct. 7 to decide whether to recall Gov. gray Davis, whom many blame for the state's budget woes.

ISSUE TRACKER for Related Reports
State and Local Governments
Sep. 11, 2009  State Budget Crisis
Oct. 03, 2003  State Budget Crises
Dec. 24, 1971  State Legislatures in Transition
Sep. 25, 1968  State Constitutional Reform
Oct. 11, 1967  Local Government Modernization
Aug. 15, 1956  Metropolitan Government
May 25, 1939  Reorganization of City Government
Feb. 24, 1939  Reorganization of County Government
May 23, 1938  Reorganization of State Governments
Oct. 29, 1937  State Control of Local Government
Sep. 01, 1936  Consolidation of Local Governments
Jan. 03, 1933  Reorganization of Local Government
Jun. 02, 1930  Changes in American City Government
Oct. 30, 1924  Political Statistics of the States
BROWSE RELATED TOPICS:
Budget and the Economy
Medicaid and Medicare
Medicaid and Medicare
State, Local, and Intergovernmental Relations
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