By M. Scott Carter
The Journal Record
Posted: 09:20 PM Wednesday, July 7, 2010
OKLAHOMA CITY – For most Oklahomans, July means sun, summer and the Independence Day holiday.
But for state budget officials, July has a different meaning.
Instead of a holiday, July 1 marks the start of the new fiscal year – a budget year that some experts say won’t be any prettier than the last one.
In fact, in many parts of the country, it could be worse.
“Dismal state revenue collections caused by the severe recession are setting the stage for a new round of state budget cuts as fiscal year 2011 begins in most states on July 1,” wrote David Blatt on the Oklahoma Policy Institute’s website. “The states’ cumulative budget shortfalls will likely reach $140 billion in the coming year, the largest shortfall yet in a string of huge annual gaps that date back to the beginning of the recession.”
Blatt said the last two years of the country’s fiscal crisis have had an enormous impact on states’ budgets.
“The National Association of State Budget Officers reported in its most recent Fiscal Survey of the States that for the first time ever, state general fund spending declined for two consecutive years in 2009 and 2010,” he wrote. “The Center on Budget projects that while total state budget gaps will be slightly less in FY 2011 than in FY 2010, the availability of less federal Recovery Act funds this year means that states will see larger shortfalls.” FULL ARTICLE
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Wed, July 7, 2010
by Crystal Drwenski