States Face another $12 Billion Budget Shortfall

States filled an $84 billion gap to balance their 2011 fiscal year budgets, which took effect earlier this month. But they could collectively face a new $12 billion hole if Congress fails to help cover growing Medicaid costs.
Without another injection of government money for Medicaid, four states – California, Texas, North Carolina and New York – could face new gaps exceeding $1 billion each, while 21 others could see shortfalls over $100 million, according to a budget report issued by the National Conference of State Legislatures.