States' budget deficits exceed $200B

WASHINGTON, April 24 (UPI) -- U.S. states will soon have to make major budget cuts as state budgets nationwide are in the red by more than $200 billion, new data shows.

The National Conference of State Legislatures said in its newest survey of states' financial situations while state officials have already trimmed $40 billion from the budgets, they can expect to target $62 billion more to balance their budgets, Stateline.org said Friday.

The conference added the only U.S. states likely to avoid budget gaps in the upcoming fiscal year are Arkansas, Missouri, North Dakota and Wyoming.

Sujit CanagaRetna, Southern Legislative Conference of the Council of State Governments senior fiscal analyst, said states' budgets through 2010 have such substantial gaps that at least 12 have already taken steps to increase sales or income taxes.

"We're seeing a blizzard of fees to help states balance their budgets," CanagaRetna said.

Stateline.org said in addition to possible tax hikes, some states are considering cost increases for car rentals and ringtone downloads, along with laptop and automobile purchases.