Bad economies in states to worsen: governors | Reuters: "The situation is fairly poor for a lot of states around the country. In fact, most states,' Vermont Governor Jim Douglas, who is chairman of the association, said at a press conference at its annual meeting.
'What we're finding out from a fiscal standpoint is that the worst is yet to come,' Douglas said.
In a survey conducted last week of 45 of the 50 states, the group found that states have $18.8 billion of budget gaps yet to be closed in fiscal 2010. This comes after they have already imposed measures to eliminate budget imbalances totaling $87 billion in the fiscal year, which for most started last summer.
In the budgets they are drafting for fiscal 2011, states foresee shortfalls of $53.6 billion and for fiscal 2012 $61.6 billion."
And there is more of this "lagging indicator" stuff. This one's different, folks. This isn't cyclical. It's structural.