For Many American States, It’s Like the Recession Never Ended
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Alabama Governor Robert Bentley has warned of impending cuts, including the closing of 15 of 22 state parks. Photographer: Brynn Anderson/AP Photo
Six years after the recession ended, many U.S. states are hard pressed to balance budgets because of a sluggish recovery and their own policy decisions. The fiscal fragility raises questions about how they will weather the next economic downturn.
A majority of states are making cuts, tapping reserves or facing shortfalls despite an improving national economy and stock markets at record levels, according to Standard & Poors and the Nelson A. Rockefeller Institute of Government. State revenue hasn’t rebounded to a prerecession peak adjusted for inflation, and other factors are putting pressure on budgets…
For Many American States, It’s Like the Recession Never Ended
