Of 36 States Facing Deficits This Year, 22 Are Increasing Spending

(CNSNews.com) – Thirty-six of the 50 states – or 72 percent – are now facing budget deficits in fiscal 2009, according to a mid-year report released Monday by the National Governors Association and the National Association of State Budget Officers.

At the same time, 22 of these states facing deficits have adopted budgets that call for increased spending in fiscal year 2009. (See chart.)

Over the past 30 years, according to the report, states have increased spending by an average of 6 percent each year. That trend slowed a bit in 2008, when spending increased by only 5 percent. Budgets enacted for 2009 actually decreased total state spending nationwide by 0.1 percent.