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Tennessee

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Tennessee

Annual tax revenue change: 0.6%
Jan.-Mar. 2008 tax revenue: $2.648 billion
Annual home value change: 3.9%

The state's economy has been worsening in recent months. In May, the unemployment rate rose to 6.4%its highest in 16 years. The state's $27.8 billion budget for the coming year required the governor and lawmakers to make up for a $468 million deficit. The state plans to reduce employees by 5% and scrap its goal of increased funding for schools and its public pre-kindergarten program.