Virginia

Getty Images

Virginia

Rank: 9 (No change)
Budget gap (as a % of the total budget): 12.80%
Total gap: $2.2 billion
Gap before budget was approved: $1.2 billion
Additional midyear gap: $974 million

Governor Timothy Kaine, who has already made major cuts to university and community-college funding, said that the state's shortfall in its two-year budget could triple, to about $3 billion, if the economy's rapid decline continues. Kaine's plan also calls for slashing 1,500 state jobs and increasing the cigarette tax. Tax revenues are down partly because of the falling real estate market and drops in retail sales revenue.