AN UPDATE ON STATE BUDGET CUTS

This report from the Center on Budget and Policy Priorities outlines the economic and financial challenges of the US and how the states have dealt with these fiscal realities and consequences.

Cuts to state services not only harm vulnerable residents but also worsen the recession — and dampen the recovery — by reducing overall economic activity. When states cut spending, they lay off employees, cancel contracts with vendors, reduce payments to businesses and nonprofits that provide services, and cut benefit payments to individuals. All of these steps remove demand from the economy.  [Full Report:  Center on Budget and Policy Priorities]