ATTENTION MUNI INVESTORS: These 15 States Have Bulging Budget Gaps For Next Year

jerry brown

The state budget crisis will continue next year, and it could be worse than ever. That’s part of what’s freaking out muni investors, who last week dumped them like they haven’t in ages.

States face a $112.3 billion gap for next year, according to the centre on Budget and Policy Priorities. If the shortfall grows during the year — as it does in most years — FY2012 will approach the record $191 billion gap of 2010. Remember, with each successive shortfall state budgets have become more bare.

Things could be especially bad if House Republicans push through a plan to cut off non-security discretionary funding for states, opening an additional $32 billion gap. 

#15 Colorado

Projected budget gap: $1.1 billion

Share of this year's budget: 15.4%

The budget gap was $1.5 billion in FY2011; $1.6 billion in FY2010; and $1.1 billion in FY2009. Note: Years of cuts mean the budget is threadbare.

Source: CBPP

#14 Virginia

Projected budget gap: $2.3 billion

Share of this year's budget: 15.4%

The budget gap was $1.3 billion in FY2011; $3.6 billion in FY2010; and $2.3 billion in FY2009. Note: Years of cuts mean the budget is threadbare.

Source: CBPP

#13 North Carolina

Projected budget gap: $3 billion

Share of this year's budget: 15.7%

The budget gap was $1.4 billion in FY2011; $5 billion in FY2010; and $3.2 billion in FY2009. Note: Years of cuts mean the budget is threadbare.

Source: CBPP

#12 Arizona

Projected budget gap: $1.4 billion

Share of this year's budget: 16.7%

The budget gap was $3.1 billion in FY2011; $5.1 billion in FY2010; and $3.7 billion in FY2009. Note: Years of cuts mean the budget is threadbare.

Source: CBPP

#11 Oregon

Projected budget gap: $2.5 billion biennial

Share of this year's budget: 17.6%

The budget gap was $577 million in FY2011; $4.2 billion in FY2010; and $442 million in FY2009. Note: Years of cuts mean the budget is threadbare.

Source: CBPP

#10 Louisiana

Projected budget gap: $1.7 billion

Share of this year's budget: 21.2%

The budget gap was $1.0 billion in FY2011; $2.5 billion in FY2010; and $341 million in FY2009. Note: Years of cuts mean the budget is threadbare.

Source: CBPP

#9 Connecticut

Projected budget gap: $3.8 billion

Share of this year's budget: 21.6%

The budget gap was $5.1 billion in FY2011; $4.7 billion in FY2010; and $2.7 billion in FY2009. Note: Years of cuts mean the budget is threadbare.

Source: CBPP

#8 Texas

Projected budget gap: $10 billion

Share of this year's budget: 22.3%

The budget gap was $4.6 billion in FY2011; and $3.5 billion in FY2010. Note: Years of cuts mean the budget is threadbare.

Source: CBPP

#7 Minnesota

Projected budget gap: $3.8 billion

Share of this year's budget: 25%

The budget gap was $4.0 billion in FY2011; $3.4 billion in FY2010; and $1.6 billion in FY2009. Note: Years of cuts mean the budget is threadbare.

Source: CBPP

#6 South Carolina

Projected budget gap: $1.3 billion

Share of this year's budget: 26.1%

The budget gap was $1.3 billion in FY2011; $1.2 billion in FY2010; and $1.1 billion in FY2009. Note: Years of cuts mean the budget is threadbare.

Source: CBPP and Washington Times

#5 Mississippi

Projected budget gap: $1.2 billion

Share of this year's budget: 27.6%

The budget gap was $716 million in FY2011; $917 million in FY2010; and $453 million in FY2009. Note: Years of cuts mean the budget is threadbare.

Source: CBPP and Clarion Ledger

#4 California

Projected budget gap: $25 billion

Share of this year's budget: 30.2%

The budget gap was $17.9 billion in FY2011; $45.5 billion in FY2010; and $37.1 billion in FY2009. Note: Years of cuts mean the budget is threadbare.

Source: CBPP and Bloomberg

#3 New Jersey

Projected budget gap: $10.5 billion

Share of this year's budget: 37.5%

The budget gap was $10.7 billion in FY2011; $11 billion in FY2010; and $6.1 billion in FY2009. Note: Years of cuts mean the budget is threadbare.

Source: CBPP

#2 Illinois

Projected budget gap: $15.0 billion

Share of this year's budget: 46.2%

The budget gap was $13.5 billion in FY2011; $14.3 billion in FY2010; and $4.3 billion in FY2009. Note: Years of cuts mean the budget is threadbare.

Source: CBPP and St. Louis Beacon

#1 Nevada

Projected budget gap: $1.3 billion $2.7 billion

Share of this year's budget: 36.7% 54%

The budget gap was $1.8 billion in FY2011; $1.5 billion in FY2010; and $1.6 billion in FY2009. Note: Years of cuts mean the budget is threadbare.

Source: CBPP

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