BusinessWeek Logo
Arizona

Wikipedia: Public Domain

Arizona


Budget gap (as a % of the total budget): 19.9%
Gap: $2 billion

Arizona was hit hard by the subprime crisis, and its economy has slowed significantly since mid-2006. Lawmakers, who had to make up a $2 billion budget shortfall for fiscal 2009, reduced the Medicaid rolls, put a freeze on hiring, and cut funding for community health centers and state universities.