States in the United States have insufficient budgets, and Alberta ranks among the top three

States in the United States have insufficient budgets, and Alberta ranks among the top three (Alberta Times) Balancing the budget is not only a problem for the federal government, but also for state governments. The Great Recession,…

(Alberta Times)

Balancing the budget is not only a problem for the federal government, but also for the state governments. The Great Recession severely affected fiscal revenue and budget shortfalls in some areas of the United States. Dozens of U.S. states face budget shortfalls worth hundreds of millions, according to a report from the Center on Budget Policy Priorities. 24/7 Wall Street looked at fiscal year 2011 to identify states with gross budget shortfalls of 27 percent or more, states that were extremely underfunded. In most cases, the areas with the worst budgets also have terrible local economies. Due to budget shortfalls, government services have been severely cut. In fiscal year 2011, 29 states cut benefits for people with disabilities and the elderly, and 34 states reduced funding for children and early education. However, most states also maintain government employee positions, benefits, and salaries. No. 3 Arizona 2011 budget shortfall percentage: 39.0%, 2011 budget shortfall amount: $3.3 billion, 2012 forecast budget gap: 17.0%, GDP change from 2006 to 2010: +2.7%, change in median home sales price from 2006 to 2010: -28.6%. Like Nevada, Arizona has been particularly hard hit by the second mortgage crisis. Between 2006 and 2010, the state's median home price fell 28.6 percent, the fourth worst rate in the nation. During this period, gross product, poverty and income levels stagnated or even worsened significantly. Arizona has had one of the nation's worst budget shortfalls since 2009, with a three-year total of $12.1 billion. In an effort to balance the budget, the state has made dramatic budget cuts, including revoking Medicaid eligibility for more than 1 million low-income residents, cutting preschool funding for more than 4,000 children, selling off state office buildings and more.