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Rank: 5 (Previous Rank: 4)
Budget gap (as a % of the total budget): 19.60%
Total gap: $1.4 billion
Gap before budget was approved: $898 million
Additional midyear gap: $536 million

Nevada has the worst foreclosure rate in the nation, and its economy has slowed dramatically this year. The governor capped the state's children's health program and increased children's health-care premiums, and cut funding for K-12 education, higher education, and welfare. In a special session this month, lawmakers ratified bills to plug the shortfall by cutting state programs, including funding for a major road project and authorizing a line of credit from a $160 million fund for local governments.