States in Budget Troubs

BusinessWeek has a slideshow of the 20 States in the Worst Budget Trouble.

Tennessee comes in at a respectable, tho not disastarous, 13th.

Topping the list is Arizona, with a $3.1 billion budget gap. Coming in second is California, with a 30.6 billion budget gap (I think the ranking is done by the percentage gap of the total budget, not the actual dollars of the budget deficit).

About Cali:

"The Golden State is looking a lot less golden these days as it is being forced to hold off on $3.8 billion in financing for road, prisons, school, and other projects because of the current budget shortfall. California, which has been battered by foreclosures, needs the money to pay for immediate needs, including health care and public safety. Democratic and Republican lawmakers have been unable to agree on a compromise. Governor Arnold Schwarzenegger supports new spending cuts and tax increases in addition to previously enacted cuts to the state's health insurance program for the poor and other social service programs."

Tennessee budget gap is $1.2 billion. BusinessWeek notes that the state depends heavily on sales tax and has been hit hard by the drop in consumer spending. So far, the state as cut between 1,500 and 2,000 jobs and reduced funding for higher education.

ps. Happy Birthday, Dad!