Ten States Facing Budget Disaster

Nov 11, 2:38 PM EST

Pew report says states face budget deficits, economic challenges similar to California's

By JUDY LIN, Associated Press Writer

SACRAMENTO, Calif. (AP) -- A study released Wednesday warns that nine states are barreling toward an economic disaster similar to California's ongoing fiscal crisis that has been marked by IOUs and budget-busting deficits.

The budget woes could mean higher taxes, accelerated layoffs of government employees, more crowded classrooms and fewer services in the coming year for some of the nation's most populous states.

Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin join California as those most at risk of fiscal calamity, according to the report by the Pew Center on the States.

Read the rest of the AP article here.