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States scramble to address budget shortfalls

Furloughs and job reductions, tax increases and freezes on projects are implemented as the new fiscal year begins.

July 02, 2009|Associated Press

Budget trouble extends far beyond California. Here's a rundown of other strapped states:

Arizona -- Republican Gov. Jan Brewer kept state government running but rejected funding levels for K-12 schools and said she was calling a special session next week to increase school funding.

Connecticut -- Gov. M. Jodi Rell vetoed the Democrats' proposal and was meeting privately with legislative leaders about a new two-year tax-and-spending plan. The day before, the Republican governor signed an executive order to keep the government running without a budget in place.

Illinois -- Democratic Gov. Pat Quinn on Wednesday vetoed a bare-bones budget from lawmakers, leaving the state with no spending plan.

Kentucky -- Lawmakers last week averted a possible $1-billion budget shortfall by passing legislation that allows Gov. Steve Beshear, a Democrat, to cut services and tap more than $740 million in federal stimulus money.

Missouri -- Democratic Gov. Jay Nixon has vetoed or delayed $430 million in spending for the budget that took effect Wednesday, halting some building projects and eliminating about 200 state jobs.

Mississippi -- Lawmakers left the state's utility regulatory agency unfunded. Republican Gov. Haley Barbour says he can run it by executive order.

Nevada -- Sales taxes have been raised slightly, businesses' annual fees have been doubled, and larger employers are paying higher payroll taxes. State workers must take furloughs one day a month.

New Hampshire -- The budget will be balanced if the state wins two lawsuits, but residents and visitors face a slew of tax and fee increases.

North Carolina -- State government avoided a potential shutdown late Tuesday when Democratic Gov. Bev Perdue signed a stopgap plan that gives House and Senate Democrats two more weeks to work out a deal.

Ohio -- A budget impasse over a gambling proposal by Democratic Gov. Ted Strickland continued, all but guaranteeing that lawmakers would need a second temporary budget. On Tuesday, lawmakers passed a seven-day plan.

Pennsylvania -- The state will delay payments to vendors, and Gov. Edward G. Rendell, a Democrat, backs a 16% income-tax increase. State workers will receive only partial pay on July 17 and July 24, after which paychecks will be withheld entirely until the impasse is solved.

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