States cut spending for first time since 1983

Bloomberg, December 17, 2008
Sales and income tax collection shortfalls have prompted 22 states to trim their budgets by a combined $12.1 billion for the current fiscal year. The shortfalls could endanger state spending for Medicaid, which is usually the second-largest item in the state budgets after education. These cuts will come at a time when Medicaid enrollment is expected to grow because of rising unemployment.

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