Arizona*
Annual tax-revenue change: -13.6%
January-March 2008 tax revenue: $1.85 billion
Annual home-value change: -5.5%
Arizona was hit hard by the subprime lending crisis, and its economy has slowed significantly since mid 2006. Lawmakers are trying to make up a $1.9 billion budget shortfall for fiscal 2009 and are considering borrowing $501 million for school construction, pulling money from the "rainy day" fund, and making cuts to the state universities, the Economic Security Department and the Arizona Health Care Cost Containment System of the Department of Health Services.
*Annual tax-revenue change compares revenues for the January-March period in 2008 to the same period a year earlier. Annual home-value change compares the first quarter of 2008 to the first quarter of 2007 and was generated by the Office of Federal Housing Enterprise Oversight.
Click here to read "The next victim of the real-estate crisis."
By Prashant Gopal, BusinessWeek
Source: All data from the Nelson A. Rockefeller Institute of Government, the public-policy research arm of the State University of New York.
