State budget shortfalls.(IN SESSION)(Brief article)

The biggest issue facing state legislatures in 2009 is budget gaps. According to a report by the National Conference of State Legislatures (NCSL), nearly two-thirds of states are facing budget shortfalls nearing $50 billion for fiscal year 2009. Due to the struggling economy, states are seeing a decrease in revenue from capital gains, income and sales taxes. As a result, many states are considering wide-sweeping spending cuts on Medicaid, education and corrections programs. Additionally, commercial real estate professionals need to be aware of state financial situations, because when state revenues decrease, state legislators and governors propose new taxes and fees.

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