State Fiscal Woes Start to Put Squeeze on K-12 Budgets

Program cutbacks loom as officials eschew taxes in coping with shortfalls

Except for such energy-rich states as Alaska, Wyoming, and North Dakota, states across the country are confronting deteriorating budget conditions that have tied the hands of legislators and governors hoping to spare K-12 education.

Enduring the worst of the financial woes are Alabama, Arizona, California, Florida, and Nevada, which face shortfalls greater than 10 percent of their budgets for fiscal 2009, according to the latest survey of state fiscal officers by the Denver-based National Conference of State Legislatures, released last month.

Altogether, the 2009 budget gaps—the difference between what states are expected to collect in revenue and what they’re expected to spend on services—will exceed $26...