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Dec 14

State Budget Shortfalls and State-Specific Budget Cuts

Public-Private Long-Term Care Insurance Plans will have a tremendously positive impact on state budgets if we educate employers to offer it now to all employees to decrease cuts in other services like you see here.

Alabama has an 8.3% budget shortfall for FY2011. In addition to cutting K-12 education and reducing the state workforce, Alabama has ended homemaker services for approximately 1,100 older adults, which allowed people to avoid nursing home care. Alabama’s colleges and universities will raise tuition anywhere from 8% to 23%, depending on the institution in order to make up for insufficient state funding. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Arizona has a 36.5% budget shortfall for FY2011 and has cut services for the elderly and disabled and the state workforce, including 115 workers who lost their jobs when 11 Department of Motor Vehicles closed. In addition, over one million low-income Arizona residents have lost access to Medicaid medical services such as insulin pumps and emergency dental services; 14,500 severely-mentally ill adults have lost case management, therapy and transportation services. Arizona eliminated preschool for 4,328 children and funding to provide additional support for disadvantage children preschool to 3rd grade. Kindergarten funding was cut in half so others have to pay for keeping children in school beyond a half-day schedule. Also, Arizona’s Board of Regents approved tuition hikes that range from 9% to 20% for the states colleges and universities. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

California has a 20.7% budget shortfall for FY2011and has cut services for the elderly and disabled, the state workforce, and has significantly increased taxes. California has cut funding for the Children’s Health Insurance Program, nearly all funding for HIV/AIDS patients, and eliminated funding for the domestic violence shelter program and maternal, child and adolescent health programs. California has reduced K-12 aid to local school districts by billions of dollars and has cut funding for adult literacy instruction and help for high-needs students. The University of California has increased tuition by 32 percent. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Colorado has a 21.5% budget shortfall for FY2011 and has cut and the state workforce and has significantly increased taxes. In addition, Colorado is cutting payment rates for mental health providers, including institutional mental health treatment. Colorado has reduced public school spending in FY2011 by $260 million. Also, higher education funds were reduced by $62 million from FY2010, causing some layoffs in the University of Colorado system and higher employee contributions for health and retirement benefits. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Connecticut has a 28.8% budget shortfall for FY2011 and has cut public health, K-12 and higher education, the state workforce and has significantly increased taxes. The governor has ordered budget cuts to programs that help prevent child abuse and provide legal services to foster children. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Delaware has an 11.4% budget shortfall for FY2011 and has cut K-12 education, the state workforce and has significantly increased taxes. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

The District of Columbia has a budget shortfall of 1.7% for FY2011. In addition to reducing the state workforce, the District of Columbia has cut K-12 education and services for the elderly and disabled. It also cut its homeless services by 20 percent, and reduced cash assistance and funding for services that help low-income residents stay in their own homes. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Florida has a 19.5% budget shortfall for FY2011 and has cut public health, services for the elderly and disabled, K-12 education and the state workforce. Also, due to funding cuts in education, Florida’s 11 public universities raised tuition by 15 percent for the 2010-11academic year. This tuition hike combined with a similar increase in 2009-10, results in a total two-year increase of 32 percent. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Georgia has a 25.4% budget shortfall for FY2011 and has cut public health, services for the elderly and disabled and the state workforce, such as staff who help families apply for food stamps, Medicaid and cash assistance. Georgia has cut K-12 education $403 million which caused school districts to be exempt from class size requirements. Higher education was cut $151 million. As a result, undergraduate tuition for Fall 2010 at Georgia State, Georgia Tech, and the University of Georgia was increased by 16 percent. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Hawaii has an 11.8% budget shortfall for FY2011 and has cut higher education, the state workforce and has significantly increased taxes. In addition, Hawaii shortened the 2009-2010 school year by 17 days in order to deal with the budget shortfall. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Idaho has a 3.5% budget shortfall for FY2011 and has cut public health, K-12 and higher education, the state workforce, and services for the elderly and disabled. Idaho’s department of Health and Welfare has reduced or eliminated cash assistance to 1,250 low-income elderly adults and people with disabilities. Idaho’s Dept. of Health and Welfare has closed nine of its 45 field offices, limiting access to public assistance services. The University of Idaho is imposing furlough days on 2600 of its employees. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Illinois has the second largest budget shortfall of all 50 states for FY 2011 at 40.4% and has cut services for the elderly and disabled, higher education and the state workforce. In addition, access to community mental health services for children has been limited and has been reduced or eliminated for non-Medicaid eligible adults. Funding reductions for schools resulted in a grant program used to improve the reading and study skills of at-risk students from K-6th grade. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Indiana has a 9.4% budget shortfall for FY2011 and has cut public health, services for the elderly and disabled, K-12 and higher education and the state workforce. Cuts in higher education caused staff layoffs at Indiana University. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Iowa has a 20.3% budget shortfall for FY2011 and has cut K-12 and higher education, and the state workforce. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Kansas has a 9.1% budget shortfall for FY2011 and has cut services for the elderly and disabled, K-12 and higher education and the state workforce. In addition to reducing the state workforce, grants to centers for independent living have been reduced resulting in a loss of services for nearly 2,800 individuals with a disability. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Kentucky has a 9.1% budget shortfall for FY2011 and has cut K-12 and higher education in addition to cutting the state workforce. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Louisiana has a 12.9% budget shortfall for FY2011 and has cut public health, higher education and the state workforce. Louisiana has capped or reduced funding for programs that serve people who have disabilities or are elderly. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Maine has a 34.7% budget shortfall for FY2011 and has cut public health, services for the elderly and disabled, K-12 and higher education and the state workforce. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Maryland has a 15.3% budget shortfall for FY2011 and has cut public health, services for the elderly and disabled, higher education and the state workforce. Also, Maryland has cut professional development for principals and educators, health clinics, gifted and talented summer centers and math and science initiatives at K-12 schools. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Massachusetts has a 8.6% budget shortfall for FY2011 and has cut public health such as dental benefits for 700,000 low-income residents and eliminated health insurance for low-income legal immigrants. Massachusetts has cut K-12 and higher education, the state workforce and has significantly increased taxes. Massachusetts cut funding for the state’s elder home care program by 6 percent. This program allowed elderly residents to receive long-term care in their community rather than a nursing home. This cut could result in more than 1,000 elderly residents losing access to care. Also, Massachusetts reduced funding by 16% from 2010 for early intervention services for special-needs children. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Michigan has a 9.3% budget shortfall for FY2011 and has cut the state workforce and public health, particularly a program that provided medical coverage for 950 adults with dependent children who were transitioning from welfare to work. Michigan has frozen enrollment for long term care services and supports that help the developmentally disabled avoid institutionalization. Also, Michigan has cut the school aid budget by $382 million and is at a $154 per-pupil reduction in K-12 below 2009 levels. Michigan has also reduced higher education financial aid by $135 million resulting in a 44 percent cut in tuition grants and a wide array of scholarships. Michigan reduced funding by 38% for the No Worker Left Behind program, a job training and education grant. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Minnesota has a 25.0% budget shortfall for FY2011 and has cut public health and the state workforce. In addition, bonuses for Minnesota residents successfully transferring from welfare to work are being cut in half. Minnesota has restricted enrollment in or scaled back a number of programs that allow the elderly and disabled to receive services in their home that they might otherwise only be able to receive in a nursing home, hospital, or other institution. As a result thousands of elderly and disabled Minnesotans will see their access to these services denied or significantly reduced. Also, Minnesota’s higher education cuts caused 9,400 students to lose their state financial aid grants, and the remaining financial aid recipients will see their grants cut by 19 percent. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Mississippi has a 15.9% budget shortfall for FY2011 and has cut services for the elderly and disabled K-12 and higher education, and the state workforce, including layoffs of 124 workers from Mississippi’s Department of Human Services, 115 of them from a community-based juvenile justice facility. Mississippi’s mental health budget affecting services for adults and adolescents has been reduced 22 percent from FY09 levels. Some early intervention programs have been eliminated. Mississippi cut funding for the Mississippi Adequate Education Program by 7.2 percent (a program established to bring per pupil K-12 spending up to adequate levels in every district). (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Missouri has a 9.4% budget shortfall for FY2011 and has cut public health, the state workforce, and services for the elderly and disabled. Also, Missouri is cutting funding for K-12 transportation by 46 percent, resulting in longer rides and the elimination of routes for some of the 565,000 students who rely on the school bus system. Missouri reduced funding by 60 percent for the state’s only need-based financial aid program for higher education, which helps 42,000 students access higher education. After other scholarship money was brought in, the net reduction is still 24 percent. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Montana is projecting a budget shortfall for the first time in this recession of $154 million for FY2012, which is 8.3% of the FY2011 budget.

Nebraska has a 9.7% budget shortfall for FY2011 and has cut public health, K-12 and higher education, and the state workforce. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Nevada has the largest budget shortfall for FY2011 of all at 54.5% and has cut public health, K-12 and higher education, the state workforce and has significantly increased taxes. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

New Hampshire has a 27.2% budget shortfall for FY2011 and has cut public health and services for the elderly and disabled. Reimbursements have been reduced for children’s support services in 10 mental health centers. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

New Jersey has a 38.2% budget shortfall for FY2011 and has cut public health, K-12 and higher education, and eliminated 2000 jobs in the state workforce. Due to a combination of eliminating eligibility completely for legal immigrant parents who have been in the U.S. for less than five years and lowering the income threshold for others, about 50,700 low-income adults will lose access to health care coverage. 1,100 staff workers are expected to lose their jobs as a result of 11,000 kids losing access to after school programs. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

New Mexico has a 6.1% budget shortfall for FY2011 and has cut the state workforce and services to the elderly and disabled, such as cash assistance payments for low-income disabled residents by one-third. Also, New Mexico eliminated over 80% of support to the College Affordability Endowment Fund, which provides need- based scholarships to 2,366 students who do not qualify for state grants or scholarships. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

New York has a 15.9% budget shortfall for FY2011and has cut public health, K-12 education, the state workforce and has significantly increased taxes. Also, New York increased resident undergraduate tuition by 14 percent. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

North Carolina has a 30.6% budget shortfall for FY2011 and has cut public health, services for the elderly and disabled, the state workforce, and has significantly increased taxes. North Carolina temporarily eliminated funding for teacher mentoring, and cut funding by 21 percent which means that 20 small schools in low-income areas have no nurse or social worker. Furthermore, the state has also increased higher education tuition by $750 for four year institutions, and by $200 for community college students. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

North Dakota is the only state that hasn’t reported a budget shortfall since 2008.

Ohio has an 11.0% budget shortfall for FY2011 and has cut services for the elderly and disabled, K-12 and higher education and the state workforce. Ohio has eliminated virtually all state funding for mental health treatment for individuals who are not eligible for the state’s Medicaid program. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Oklahoma has a 13.7% budget shortfall for FY2011 and has cut public health, higher education and the state workforce. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Oregon has a two-year budget and is projecting a FY2012 budget shortfall of $1.8 billion which is equal to 25% of the current 2010-2011 budget. Oregon has cut K-12 and higher education and the state workforce. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Pennsylvania has a 16.2% budget shortfall for FY2011 and has already cut public health, K-12 and higher education, and the state workforce. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Rhode Island has a 13.4% budget shortfall for FY2011 and has cut public health, services for the elderly and disabled, higher education and the state workforce. Also, Rhode Island cut state aid for K-12 education and reduced the number of children who can be served by Head Start and similar services. Other cuts include funding for affordable housing, eliminated health insurance for home-based child care providers and reduced health insurance for retired state workers. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

South Carolina has a 26.1% budget shortfall for FY2011 and has cut public health, K-12 and higher education, the state workforce, and services for the elderly and disabled, such as the elimination of a program that helps seniors pay for prescription drugs not covered by Medicare Part D. The South Carolina Department of Juvenile Justice has lost almost one-fourth of its state funding, resulting in over 260 layoffs and the closing of five group homes, two dormitories and 25 after-school programs. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

South Dakota has an 8.8% budget shortfall for FY2011 and has cut higher education and the state workforce. Also, South Dakota’s Board of Regents has increased university tuition by 4.6 percent and cut university programs by $4.4 million. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Tennessee has a 9.4% budget shortfall for FY2011 and has cut public health, services for the elderly and disabled, higher education, and eliminated over 2000 state positions, about 5% of the state workforce. Some 1,500 employees accepted buyouts for early retirement. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Texas has a 10.2% budget shortfall for FY2011and has reduced higher education funding by $73 million in addition to cutting the number of children in a child care subsidy program by about 4,000 and increased waiting lists for those slots still available. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Utah has a 14.7% budget shortfall for FY2011 and has cut public health, services for the elderly and disabled, K-12 and higher education, and the state workforce. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Vermont has a 31.3% budget shortfall for FY2011 and has cut services for the elderly and disabled, higher education, and the state workforce. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Virginia has an 8.5% budget shortfall for FY2011 and has cut public health, services for the elderly and disabled, higher education, and the state workforce. Also, Virginia has cut $700 million for school district operating and capital expenses, and funding for class-size reduction in kindergarten through third grade. A $500 million reduction from last year’s budget was made permanent, which removed 13,000 jobs from the K-12 school system such as janitors, school nurses and school psychologists. Furthermore, Virginia’s community colleges implemented a tuition increase during the spring 2010 semester. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Washington has a 22.5% budget shortfall for FY2011 and has cut public health, services for the elderly and disabled, the state workforce and has significantly increased taxes. Washington suspended a program to reduce class sizes and provide professional development for teachers. Also, Washington has cut funding for the University of Washington by 26 percent for the current biennium, and Washington State University has increased tuition by almost 30% over two years. Plus Washington has cut 6% from direct aid to the state’s six universities and 34 community colleges, which can domino into tuition increases, faculty and staff cuts, etc. Medical services for 21,000 disabled adults through the Disability Lifeline program are likely to be completely eliminated. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

West Virginia has a 3.6% budget shortfall for FY2011. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Wisconsin has a 23.9% budget shortfall for FY2011 and has cut public health, higher education, the state workforce and has significantly increased taxes. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Wyoming has a 10.3% budget shortfall for FY2011 and has cut public health and the state workforce. (Center on Budget & Policy Priorities, 11/5 and 12/9/10)

Source Documents

Budget Shortfalls by State:
McNichol, Elizabeth, Phil Oliff and Nicholas Johnson. “States Continue to Feel Recession’s Impact”, Center on Budget and Policy Priorities, updated December 9, 2010
http://www.cbpp.org/files/9-8-08sfp.pdf


Specific Budget Cuts by State:

Johnson, Nicholas, Phil Oliff and Erica Williams. “An Update on State Budget Cuts”, Center on Budget and Policy Priorities, updated November 5, 2010
http://www.cbpp.org/cms/index.cfm?fa=view&id=1214

 

These documents are updated frequently. Check www.cbpp.org for updates.

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