The recession might technically be over, but the funding crunch in state and local governments could actually get worse. The stimulus act passed in 2009 sent about $250 billion to states, to help offset a plunge in tax revenues, which is how most states fund schools, roads, Medicaid, welfare, and many local services. Even with that federal aid, states have had to cut spending by nearly $50 billion, and raise taxes by another $30 billion or so. The combined effect of higher taxes and fewer services directly affects Americans' quality of life—and it could get worse as stimulus spending starts to run out and the federal government begins to deal with its own mismatch between spending and revenue.
[Read more on states where taxes are up and services are down.]
To measure the impact in each state, I created a "pain index" combining tax increases and spending cuts in each state since 2009, based on data from the National Association of State Budget Officers. Here's how each state ranks:
| State | New Taxes Per Person Since 2009 | Spending Cuts Per Person Since 2009 | Total "Pain" Per Person |
|---|---|---|---|
| Alaska | -$3 | $1,268 | $1,265 |
| California | $312 | $543 | $855 |
| Wyoming | $0 | $698 | $698 |
| Rhode Island | $91 | $528 | $619 |
| New Jersey | $6 | $596 | $602 |
| Delaware | $286 | $167 | $453 |
| Hawaii | $96 | $348 | $444 |
| South Carolina | $33 | $442 | $475 |
| Utah | $28 | $409 | $437 |
| Oklahoma | $49 | $421 | $470 |
| New York | $419 | $0 | $419 |
| Minnesota | $83 | $330 | $413 |
| Maine | $71 | $322 | $393 |
| Arizona | $154 | $237 | $391 |
| Georgia | $15 | $344 | $359 |
| Louisiana | -$16 | $358 | $342 |
| New Mexico | $22 | $315 | $337 |
| Alabama | -$3 | $338 | $335 |
| Virginia | $1 | $307 | $308 |
| Florida | $30 | $237 | $267 |
| Michigan | $51 | $202 | $253 |
| North Carolina | $105 | $146 | $251 |
| Kansas | $151 | $96 | $247 |
| Mississippi | $28 | $218 | $246 |
| Montana | $0 | $234 | $234 |
| Idaho | $0 | $219 | $219 |
| Oregon | $141 | $66 | $207 |
| Vermont | $57 | $130 | $187 |
| Kentucky | $37 | $134 | $171 |
| Tennessee | $42 | $126 | $168 |
| Colorado | $107 | $60 | $167 |
| New Hampshire | $121 | $10 | $131 |
| Nevada | $112 | $12 | $124 |
| Maryland | $6 | $96 | $102 |
| Iowa | $23 | $75 | $98 |
| Pennsylvania | $0 | $55 | $55 |
| Wisconsin | $159 | -$105 | $54 |
| Missouri | -$2 | $45 | $43 |
| South Dakota | $7 | $14 | $21 |
| Massachusetts | $135 | -$150 | -$15 |
| West Virginia | -$44 | $18 | -$26 |
| Arkansas | $5 | -$44 | -$39 |
| Illinois | $17 | -$79 | -$62 |
| Washington | $147 | -$218 | -$71 |
| Nebraska | -$1 | -$90 | -$91 |
| Texas | $1 | -$93 | -$92 |
| Ohio | -$106 | -$15 | -$121 |
| Connecticut | $221 | -$354 | -$133 |
| Indiana | -$50 | -$131 | -$181 |
| North Dakota | -$301 | -$700 | -$1,001 |
Notes: Figures include tax increases and spending cuts that have been enacted since fiscal year 2009, which began on July 1, 2008 in most states. Spending cuts refer to changes in each state's general fund between fiscal years 2008 and 2011, and in some cases is based on proposed budgets for 2011, since final budgets have not been passed in every state. Negative numbers indicate tax cuts or spending increases, and a negative "pain" number means the net burden on taxpayers is lower, not higher.
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Richard of GA 11:29AM October 19, 2010
Mark of MI 7:02AM September 24, 2010
Patricia of VT 10:21PM September 23, 2010