MORE THAN HALF of the states are reporting that they anticipate large budget shortfalls for the next fiscal year, according to the Center on Budget Policy and Priorities. Since most states are prohibited from running deficits or borrowing to cover revenue and spending gaps, governors are delivering grim news to legislatures and residents: Expect cuts ahead.
The states that will be hit hardest, and the gaps they project as a percentage of their FY 2008 general funds, are Arizona (16.2 percent), California (15.4 percent), Rhode Island (11.2 percent) and Florida (11 percent).

California is looking at a $16 billion deficit, including a 2008 shortfall. Gov. Arnold Schwarzenegger has proposed cuts of 10 percent to K-12 and community college budgets, resulting in a $40 million cut to community colleges for this year and another $483 million for next. California Federation of Teachers president Marty Hittelman has called for reinstatement of the Vehicle License Fee and a tightening of corporate tax loopholes to address the revenue side of the ledger. "We need greater state revenues through fair tax policies," he says.

Florida's economy has been particularly hard hit by the housing downturn and reduced sales-tax revenues. The Legislature has cut $1.5 billion from the current year's budget and is looking for $600 million to $800 million more. Tuition hikes seem like a sure bet too. United Faculty of Florida/AFT president Tom Auxter says layoffs are expected throughout the system, but UFF members will be protected. For the future, UFF will negotiate stronger layoff language and will be lobbying the Legislature for a change in tax policy.

In New York, a new governor and the Legislature are proposing cuts of 5.85 percent to the City University of New York and the State University of New York. This would mean a cut in state aid of $80 million to SUNY and $40 million to CUNY.

New York State United Teachers executive vice president Alan Lubin, who is also an AFT vice president, testified before the N.Y. Senate Finance Committee and the Assembly Ways and Means Committee. He noted that state support for public higher education has declined more than 35 percent since 1990. New York's projected deficit for 2009 is $4.9 billion, or 9.1 percent of its 2008 general fund.

New Jersey also is struggling to pay the piper after years of budget challenges. It is looking at a $2.5 billion to $3.5 billion deficit. Gov. Jon Corzine wants to close three state departments, lay off 3,000 public employees, and make cuts in state aid to colleges and universities by $76 million, or 4 percent.