Economics
Economic Slowdown Leaves States Facing $500 Billion Deficits
- Budget research group estimates size of gaps through June 2022
- ‘Much worse than even the worst year of the Great Recession’
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U.S. states may face budget deficits of $500 billion combined over the next two years as the deep economic slowdown causes revenue to plunge, paving the way for deep spending cuts or tax increases that could exert a drag on the recovery.
The estimate from the Center on Budget and Policy Priorities, a left-leaning think tank based in Washington, D.C., shows how long the consequences of the virtual economic shutdown will continue to ripple through state governments.