Breakdown of States' Budget Troubles

Feb. 9, 2001 -- A number of states are facing projections of shrinking taxrevenues and ensuing budget shortfalls. They include:

NORTH CAROLINA — Democratic Gov. Mike Easley invoked emergency powers Thursday todeal with a budget shortfall projected at $606 million to $741million by the end of the fiscal year. He already has imposed ahiring freeze, curtailed travel by state employees, and toldagencies to return 2 percent of their budgets. He plans to create ahalf billion-dollar escrow account to cover the shortfall throughvarious agency cuts.

SOUTH CAROLINA — Democratic Gov. Jim Hodges has proposed cuts of up to 15 percentat most state agencies, acting on projections that the state couldneed to pare as much as $500 million from current spending.

ALABAMA — Democratic Gov. Don Siegelman blamed the downturn in the economywhen he ordered a $226 million cut in this year's $4.3 billioneducation budget.

KANSAS — Republican Gov. Bill Graves' staff has projected thatDecember-January revenue collections will fall $50 million short ofestimates.

WEST VIRGINIA — Democratic Gov. Bob Wise has ordered agencies to cut spending by3 percent and Chief Justice Warren McGraw has ordered an immediatestatewide spending freeze for the court system in light of statebudget shortages.

MISSISSIPPI — Democratic Gov. Ronnie Musgrove has cut this year's budget by$94 million, including a $39 million cut in the minimum educationprogram, which funds such things as teacher salaries andtransportation expenses for the state's 149 school districts. InJanuary, he took $15 million out of the state's "rainy day" fund.

VERMONT— Democratic Gov. Howard Dean said he believes the state's midyearbudget adjustment is too high, considering January revenues thatwere $370,000 below state projections.

IOWA — Democratic Gov. Tom Vilsack, having just signed a $100 millioncut in sales taxes on heating bills, said no new tax cuts afterword that state revenues could dip $160 million below projections.

WISCONSIN — In light of flat budget projections for the next two years and a$560 shortfall left over from the current budget year, lawmakershave been told there is no money for salary increases or newprograms.

TENNESSEE — Republican Gov. Don Sundquist could be forced to dip into the$165 million "rainy day fund" to balance the budget at year's endJune 30. He already has made cuts and curbed spending to deal witha $300 million shortfall.

WASHINGTON — Democratic Gov. Gary Locke is proposing cuts of $236 million,mostly from the Department of Social and Health Services, prisonsand the health agency. He also has proposed using nearly half thestate's $1.1 billion reserve to increase teacher salaries andmaintain basic services.

OREGON — Democratic Gov. John Kitzhaber has been told that job growththat slips 2 percent below the state's current forecast would leavea $640 million hole in the budget.