Deficits Loom Again for States in Fiscal 2005 [View All]

WASHINGTON (Reuters) - Cash-strapped U.S. states predict a fifth straight year of towering budget deficits in fiscal 2005, although the shortfalls may be less than in previous years if assumptions of economic growth hold true, analysts said on Thursday.



The 2005 shortfalls predicted by 21 states that have already prepared estimates total as much as $33 billion, the Center for Budget and Policy Priorities said.


That figure was ultimately likely to top $40 billion, the Washington-based think tank said, compared to a $78 billion shortfall overcome in budgets enacted for fiscal 2004.

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The National Conference of State Legislatures says the collective deficit reported in 2002 by 43 states was $37.2 billion and in 2003 was close to $78 billion.

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