Report: 43 states in financial trouble

WASHINGTON, Dec. 11 (UPI) -- The U.S. recession has hit many states so hard they are unable to make ends meet, the Center on Budget and Policy Priorities says.

The organization said in a report that 43 states face budget shortfalls this year or next year, or both years, CNN reported Thursday.

To balance the current fiscal year budgets, more than half of the states cut spending, used reserves or raised revenues through higher taxes and fees. For fiscal year 2010, more than two dozen states have already projected that they will be unable to eliminate their shortfalls.

Currently, states and the District of Columbia are collectively short $31.2 billion, or 7.2 percent of their budgets.

At the end of the last fiscal year, 29 states had shortfalls totaling more than $48 billion.

To help cash-strapped states, the federal government should provide states with stimulus money soon, the report said, calling on Washington to give states more assistance than the federal government gave states in 2003.