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State budgets axed by housing downturn

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Florida, Rhode Island hurting for tax revenue Business Week reports that at least 29 states and Washington, D.C., have budget shortfalls for the 2009 fiscal year that total $48 billion, and that some state and local governments that "were flush with tax revenue during the five-year housing boom" are now scraping for revenue with the housing downturn. According to the report, Arizona, Florida, Nevada, Rhode Island and California, which are among the states that are reeling from a real estate downturn, are also topping the list among states with revenue shortfalls. UBS analyst predicts housing 'depression' Tom Zimmerman, who heads up a mortgage research division at UBS Securities, reports that the housing market "has been in a recession for the past year" and there is a likelihood that the housing market is headed for a "depression" once the "overall economy slips into a recession," according to a Reuters report. Zimmerman also...