Less money for the budget
If The House and Senate did not approve the extension of the federal stimulus program through June 2011 which helped the last year unemployment insurance with 35.5 billion dollars in unemployment benefits, health care with 16 billion dollars and public safety with 33 billion dollars.
State budgets have suffered for two years because money coming from sales, income and property taxes were fewer than anyone expected when people lost their jobs and stopped spending money. The federal government reports economic growth, but the National Association of State Budget Officers says that the fiscal conditions are still deteriorating. States are expected to deal with budget deficits of 296.6 billion dollars between the years 2009 and 2012, so the next years will be just as tough although increases in tax collections will be modest.11