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http://www.nga.org/files/live/sites/NGA/files/pdf/FSS1111.PDF
2011 fall survey conducted by National Governors' Association and National Association of State Budget Officers looks at projected FY2012 budgets. The survey results show that states are facing a ‘big squeeze’ from both local and federal governments. The combination of the effects of the economic downturn, tepid economic growth and the expiration of Recovery Act and other federal funds has severely impeded the growth of state resources. Additionally, spending on Medicaid is expected to consume an increasing share of state budgets and grow much more rapidly than state revenue growth, resulting in slow or no growth in education, transportation or public safety.
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