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In Ohio, where Gov. Bob Taft announced plans last week to make significant budget cuts to meet a $600 million revenue shortfall, state officials project that at least one prison and one mental hospital will have to close.
In California, with the nation's largest higher education budget and most celebrated budget shortfall, state spending on colleges and universities fell from nearly $9.5 billion in fiscal 2002 to just over $8.6 billion in 2004, and Governor Schwarzenegger's 2005 budget proposes another large drop.
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Faced with this shortfall, states would be forced to reduce benefits, the number of people they cover, how much they pay medical providers or some combination of those things.
In recent years, as a result of federal spending on other national priorities and persistent budget shortfalls, state spending on higher educaiton has fallen in almost every state in the country.
Facing budget shortfalls, states like California, New Jersey and Arizona are cutting services.
The proposed cuts, which amount to a roughly 8% reduction in pay, would help reduce a projected $800 million shortfall in state funding for UC, a result of the state's economic meltdown.
The education ministry decided last year to hire foreign teachers to plug a severe shortfall in state schools but those already in the country struggle with red tape to qualify.
The other main shortfall is state support.
Gov. John Kitzhaber projected an additional $100 million shortfall in state revenues.
In addition to the projected shortfall, the state also has to close a current $150 million gap.
The collective shortfall in state budgets has reached $17.5 billion so far this year, the National Conference of State Legislatures reported last week.
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