The state of state budgets continues to deteriorate around the country. The Center on Budget and Policy Priorities released another update yesterday to their increasingly disturbing analysis, which now shows that 31 states are anticipating budget problems in 2009, with 27 projecting a budget shortfall. We continue to reiterate that this is pretty bad 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: 31 states anticipate budget problems. Of those:

• 27 states and the District of Columbia faced or are facing $47 billion in combined '09 budget shortfalls. Arkansas and Michigan join this list.
• 2 states face '09 deficits, but have released no further information. (Connecticut joins this list. Louisiana and Michigan leave.)
• 2 other states project budget gaps for 2010 and beyond. (Connecticut leaves this list.)

CBPP: 27 STATES FACE TOTAL BUDGET SHORTFALL OF AT LEAST $47 BILLION IN 2009