Magazine

What a Downer


Without new federal funds, spending cuts by state and local governments may act as a drag on the U.S. economy into 2011, only the second time in more than 50 years that such reductions have restricted growth for three consecutive years.

127 BILLION DOLLARS

Amount of states' total budget gap, as 46 of the 50 prepare for the July 1 start of the fiscal year

48 BILLION DOLLARS

Level of emergency federal aid President Obama is seeking to help state and local governments with Medicaid expenses and to avoid teacher, firefighter, and police layoffs

25 BASIS POINTS

Estimated loss of U.S. economic growth in both 2010 and 2011 if state and local governments cut spending to balance their budgets

Data: National Governors Assn., National Association of State Budget Officers, Moody's Analytics

Miller is a reporter for Bloomberg News. Feld is a reporter for Bloomberg News.

Steve Ballmer, Power Forward
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