The report, published by the National Conference of State Legislatures, says 35 states are expected to stay in the red in fiscal year 2012. For California, the group predicts double-digit shortfalls through at least 2014.
Arturo Perez is with N-C-S-L. He says while states have less cash on hand because of the recession, they're also expected to pay for more.
"It is somewhat ironic that state services or caseloads for programs such as Medicaid and other social programs tend to go up at the very same time that states are at their weakest as far as revenues are concerned because of problems with the general economy."
Next year, California's budget shortfall could account for up
to a third of the general fund. But Perez says California is still
in much better shape than several other states. Illinois already
has an imbalance of nearly half its general fund.