States Short $27 Billion in FY 2002 Revenues, Report Says

By John Gehring

Funding for education is being slashed in several states as a sluggish economy continues to create budget headaches for lawmakers, according to a new fiscal report from the National Conference of State Legislatures.

The update says that few states have avoided hits to their budgets in the current fiscal year, which ends June 30 in most states. According to the report, which was released April 16, the nation's economic stumble has caused an estimated $27 billion shortfall in fiscal 2001 budgets and forced at least 40 states to enact or consider budget cuts.

In all, 33 states report that spending has exceeded their budgeted levels...