Budget Woes Have Several States Scrambling to Make Ends Meet

School funding among programs that could face chopping block.

Even as the 2008 fiscal year gets into full swing for most states, a handful—including Florida, Michigan, and Illinois—are still ironing the kinks out of their cash-strapped budgets.

Florida last week convened a 10-day special legislative session, scheduled to wrap up Oct. 12, with the aim of making about $750 million in cuts to help fill a $1.1 billion hole in the state’s $71 billion budget.

The expected cuts in public education include $147.5 million for a year-old merit-pay plan for teachers. Other likely moves include reduced state aid for students attending private colleges and universities and increased tuition rates for community...