The Center on Budget and Policy Priorities released an update to their analysis last week, which now shows more than half of the states are facing a budget crunch in 2009. As we've commented, this isn't good news, as state budgets are far less flexible than the federal budget and usually are legally prohibited from running a deficit. From the CBPP update: More than half of states anticipate budget problems, according to this updated analysis of state fiscal conditions.

• 19 states now project budget gaps for 2009. New Hampshire, Ohio and Wisconsin have joined this list since our last update
• The combined budget shortfall for these 19 states in 2009 is now at least $32 billion.
• 6 states now say they will have 2009 deficits, but have released no further information.
• 3 other states project budget gaps for 2010 and beyond.

CBPP: 19 STATES FACE TOTAL BUDGET SHORTFALL OF AT LEAST $32 BILLION IN 2009