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States Headed For Post-Stimulus 'Cliff'

California governor Arnold Schwarzenegger talks about the state's budget. Justin Sullivan hide caption

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Justin Sullivan

Federal stimulus programs that funneled billions of dollars to state governments are winding down, and states around the country are facing "big holes" in their budgets, according to a new report from the National Conference of State Legislatures.

A few other highlights from the report:

  • At the moment, Illinois has by far the biggest deficit of any state, relative to its overall budget; the state's deficit is 47 percent of its budget. Arizona is a distant second at 9.7 percent.

  • Eighteen states reported that Medicaid or other health care programs were over budget.

  • Officials in 17 states are concerned about the revenue outlook for the remainder of the current fiscal year. That's isn't as bad as last November, when officials in 30 states were were worried.