Nearly Half of States Expect to Confront Big Budget Gaps

The nation's economy is at its healthiest since the Great Recession, but a surprising trend is emerging among the states — large budget gaps.

An Associated Press analysis of statehouse finances around the country shows that at least 22 states project shortfalls for the coming fiscal year. The deficits recall recession-era anxiety about plunging tax revenue and deep cuts to education, social services and other government-funded programs.

The sheer number of states facing budget gaps prompted Standard & Poor's Ratings Service to call the trend a sort of "early warning."

Gabriel Petek is a credit analyst. He says if a state is grappling with a budget deficit now, after nearly six years of economic expansion, "what will be its condition when the next slowdown strikes?"