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Rank: 13 (Previous Rank: N/A)
Budget gap (as a % of the total budget): 10.40%
Total gap: $1.2 billion
Gap before budget was approved: $468 million
Additional midyear gap: $700 million

Tennessee, which depends heavily on sales tax, has been hit hard by weak consumer spending. The state eliminated between 1,500 and 2,000 state employee positions and cut funding for higher education.