January 15, 2007 (LPAC)--As the financial system collapses, revenue shortfalls are hitting state legislatures nationwide. In addition to better known problems in New York, California and New Jersey, reports from other states are mounting, with only one solution, LaRouche's HBPA.

MAINE: New sales tax revenue estimates indicate that further cuts are likely and that the rainy day fund will have to be tapped. "With the ink barely dry on the proposed supplemental budget, the Baldacci administration is expecting more red ink and more spending cuts," says the Bangor Daily News, "as the recently re-projected sales tax revenues are failing to meet the lower estimates." The state's Finance Director Rebecca Wyke said November sales tax revenues were down by at least another $1million, and that "there is no expectation, based on national studies and anecdotal reports of sales in Maine, that there will be a rebound when December sales tax receipts." Unlike California, Governor John Baldacci is so-far determined to keep the social safety net in place. "We have to do it differently," he told the paper, "but we will keep it in place."

MICHIGAN: The State's Treasurer, Robert J. Kleine, said revenues are down roughly $200 million from adopted budget which was slashed and tax hikes made to adopt it. "We continue to see very slow growth in state tax revenues," he told the AllPatriotNews. "Annual sales tax collections have grown less than the rate of inflation for six consecutive years, while, adjusted for inflation, General Fund revenues have dropped nearly 40 percent since 2000 ... [and] the slowing national economy will reduce 2008 revenues below levels assumed in the budget."

KENTUCKY: State legislature is considering a 12% cut in the Department of Education's general fund, with an additional 7% in specialized education programs, including cancelling full-day kindergarten.