State Budget Situations are Dire Due to the National Economic Slowdown, Says Political Observer Lou Cannon

States are feeling the impact of the national economic slowdown. Seven states face serious budget situations because of precipitous drops in revenue and another 13 face mounting problems.

(PRWEB) April 24, 2008 -- The sky isn't falling yet, but states are definitely feeling the impact of the national economic slowdown. Although states have proven resilient in previous downturns, and muddled through recessions by a mix of conservative and liberal solutions, "this time the muddle may be difficult to achieve," says veteran journalist and political observer Lou Cannon.

"Seven states face serious budget situations because of precipitous drops in revenue and another 13 face mounting problems," Cannon writes in the April 21 edition of State Net Capitol Journal. "Bursting of the housing bubble has caused a decline in receipts from property taxes. The ripple effect has affected even states that do not rely on the property tax, causing a decline in sales tax receipts, which are a source of income to 45 states.

"The budget situation is dire and the consequences potentially severe for many people." Cannon predicts that "schools and prisons will become more overcrowded. Fewer poor people will receive health care. Some state parks will close."

To get the full story, see the April 21 edition of State Net Capitol Journal at http://www.statenet.com/capitol_journal/04-21-2008/html.

About Lou Cannon

Renowned journalist Lou Cannon covered politics and policy for 26 years at the Washington Post. Generally regarded as the foremost biographer of President Ronald Reagan, Cannon has written five books about Reagan, including the acclaimed President Reagan: The Role of a Lifetime and most recently, with his son Carl Cannon, Reagan's Disciple: George W. Bush's Troubled Quest for a Presidential Legacy.

About State Net

State Net (www.statenet.com) has helped organizations track legislative and regulatory developments for more than 30 years. Headquartered in Sacramento, State Net monitors every bill in the 50 states, District of Columbia and Congress along with all state agency regulations. The company delivers online services, issue-based consultation and analysis that enables the nation's leading organizations to effectively respond to opportunities and risks in the states.

State Net Capitol Journal delivers coverage of public policy issues from all 50 states. Featuring analysis of emerging trends, state budgets, governors, legislatures and elections, Capitol Journal readers gain an intelligent overview of the major political issues and events in state governments.

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