Majority of States Face Budget Shortfalls; Service Cuts Possible

According to the Center on Budget and Policy Priorities (CBPP), this year or next year the majority of states will suffer a budget deficit of around 4%. Due to the unsettled economic conditions it is likely that this deficit will grow and these problems are likely to continue for some years.

At least 17 states have considered cuts in health care and insurance to low income families as well as cutting programs for the elderly and disabled. At least 15 states are cutting services in the areas of medical, rehabilitative, home care, and other services used by low-income people who are elderly or disabled.