Brief Overview of State Fiscal Conditions and the Effects of Federal Policies on State Budgets

The Center on Budget and Policy Priorities reports that state revenues actually dropped by a total of $21.6 billion during FY03. Adjusting for inflation and population growth, state revenues for FY 2003 were $56.9 billion less than in FY01, the center finds. California, Florida, Georgia, Illinois, New Jersey, New York, North Carolina and Virginia are singled out as facing the largest deficits going into the next fiscal year, which begins next July for most states.