Wikipedia: Public Domain
New Jersey
Budget gap (as a % of the total budget): 7.7%
Gap: $2.5 billion
The state's economic slump is due to the weak housing market and rising inflation. The state legislature passed a $32.8 billion budget that is $600 million less than last year's budget. New Jersey plans to trim the budget by offering early-retirement incentives for state employees and through attrition.
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