States still facing big budget gaps after two tough years

The problem of illiquid States, clearly not limited to the Euro Zone, will not go away quietly.

The nation's battered state governments face a collective $41 billion budget gap next fiscal year, a survey released Wednesday found.

State officials will have to contend with slow revenue growth, increased spending demands and the end of federal stimulus assistance next year, according to the semi-annual Fiscal Survey of States, released by the National Governors Association and the National Association of State Budget Officers.

"Many budget and governor's offices are telling us that fiscal 2012 could be even worse because so many painful choices have already been taken and more need to be taken as we go further," said Scott Pattison, head of the state budget officers' group.

Source: finance.yahoo.com