S&P: Downturn In Energy Production Hits Budgets In 6 States
A new financial analysis says six of the country's major energy-producing states have slipped into recession.
The report by S&P Global Ratings says a sharp decline in energy production and exploration over the last 18 months has caused revenue to plummet and job growth to stagnate. The states are Alaska, Louisiana, New Mexico, North Dakota, Oklahoma and Wyoming.
The budget troubles are not limited to just energy-producing states, although they are among the hardest hit. A recent Associated Press survey found that two-thirds of the states are currently dealing with a budget shortfall or expect to confront one in the coming fiscal year.
Experts say state economic growth has been slower than expected, with revenue in some places failing to meet projections or keep up with rising spending needs.
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