The economic slowdown in the U.S. economy that hit the Northeast a year ago is now spreading westward, according to a report by state government officials.
The National Governors Association said a survey showed that more states are cutting spending programs for 1991 and plan to dig deeper into their reserves to maintain current spending levels.George Miller, executive director of the National Association of State Budget Officers, said "the Mid-Atlantic, Great Lakes and Southeast regions will feel more strongly the effects of the slowdown in fiscal 1991, as will the Plain States."
The report added that the continued national economic slowdown and the federal cuts in state payments offered little hope of any easing of the state crunches next year.
Governors association executive director Raymond Scheppach said fiscal 1990 saw 20 states and the District of Columbia cut their budgets, and that several had announced 1991 cuts.
He said in a statement, "This number is sure to increase as the year progresses."
Scheppach said that in fiscal 1989 revenues exceeded spending in many states, but in 1990 more than half the states collected less revenue than expected.
"These collections reveal strong regional trends," he said, "with the Western states showing the strongest revenue growth and the Northeastern states showing the weakest."
The report said that 27 states and the District of Columbia collected less revenue in 1990 than they expected and that of the 17 states reporting collections over their estimates, 10 were in the western region.
It said the largest amount of new revenue - more than $2.9 billion - will come from personal income taxes.
The report said 13 states will raise income taxes.