State Budget Position Worse in 2011?

As Brad Shannon writes on his blog for the Olympian, Gov. Gregoire told Stateline.org that she fears the state budget situation may deteriorate further, setting up a tough 2011 budget session. Gregoire was one of six governors commenting  for Stateline.org at the recent National Governors Association meeting. She said:

My budget was difficult this year. But I didn’t have to raise revenue, and I got it out in time. I filled a $9 million projected deficit. But two years from now? That’s what keeps me awake. Potentially I won’t have federal stimulus dollars. And everyone predicts the states will delay in their recovery, and the news we hear is that we will be slow to recover. My greatest fear is what in the world will the states do in the next biennial budget – I’m a biennial budget state – in 2011? I don’t talk about it back home, but that’s what keeps me awake at night. It’s getting through the year, getting the recovery going as quickly as possible, readying us now to get out of it as strong and swift as possible. Otherwise I fear, and if there is no federal help at that point, I think the states will be in worse shape than they are now.

I guess she can talk about it back home, now. None of the governors interviewed could be called fiscal optimists, but there was something upbeat in Georgia Gov. Sonny Perdue's decision to use the question to launch into a recruiting pitch:

We're been very encouraged by our Department of Economic Development that we have serious prospects looking for re-investment and re-locations. That would be good news. We have the wonderful psychological impact of NCR (a technology company) announcing its relocation to Georgia of their global headquarters. We think there are others looking for these kinds of opportunities in the future, and we welcome them in Georgia. 

Speaking of budget shortfalls, California's recent budget agreement led the Seattle Times editorial board to echo the refrain heard 'round the world, "at least we're not California." 

At least, not yet. As the recession lingers, the governor's not the only one enduring sleepless nights.