The CBO has a new report out : Policies for Increasing Economic Growth and Employment
18 states are projected to have budget gaps >20% and 3 (including California, the largest economy in the US) have gaps >40%. See the nice chart above for the detailed, depressing forecasts.
The report finds that most states are near-maxing out their borrowing capabilities (the positive impact of monetary policy is nearly tapped out). Is there aid forthcoming to states with the Republicans winning their 41st Senate seat? More likely its local tax increases and lots of service cuts!
Gridlock at the Federal level with Republican votes to filibuster may bring us to budget balance sooner that otherwise, but that will be poor consolation at ~20% unemployment.
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