On December 7, the National Conference of State Legislatures (NCSL) released a report examining states’ fiscal conditions, finding that 18 states’ health care programs are over budget.  NCSL also found that at least 31 states and Puerto Rico face deficits totaling $82.1 billion for the coming fiscal year

From the report: 

Although a recovering national economy is helping to stabilize state revenues in fiscal year (FY) 2011, serious budget challenges await state lawmakers in the New Year. This largely stems from fewer federal stimulus funds available for next year’s budgets. And while state revenues are starting to pick up, the growth is unlikely to be sufficient to replace expiring American Recovery and Reinvestment Act (ARRA) funds or cover projected increases in program areas such as Medicaid and K-12 education. This means another round of budget gaps, certainly in FY 2012, but even beyond in many states.

State lawmakers closed a cumulative budget gap of $83.9 billion while crafting their FY 2011 budgets. For most states, this marked the third or fourth consecutive year of budget gaps. Now, midway through FY 2011, new gaps have opened in at least 15 states. The outlook for FY 2012 and FY 2013 reveals additional state budget gaps. At this point, it is difficult to forecast when the vast majority of states will no longer face budget gaps.

Full Report: State Budget Update: November 2010 (PDF | 197 KB)

National Conference of State Legislatures. (2010). State Budget Update: November 2010.