Rhody's rank

Another survey, another reason for Rhode Islanders to cringe. Recently the Yahoo! Finance section reported figures provided by Business Week ranking the states according to their budget shortfalls in tax revenue. The data, based on a study by the Center on Budget and Policy Priorities, indicates that Rhode Island has the fifth-worst budget gap in the nation by percentage. Rhody is $430 million in the hole, which represents 13.1 percent of its total budget. The report was completed long before the stock market plunge and financial bailout, factors that will continue to adversely affect federal, state and municipal budgets for months, if not years. Here’s the thumbnail critique:

Rhode Island’s economy has been weakened by its housing market, one of the worst in the nation. Lawmakers are trying to make up for a $430 million shortfall in their budget with proposed cuts to the public college system and aid for municipalities, as well as tighter limits on welfare benefits.

The only four states in worse shape than Rhode Island? California (-$22.2 billion, a budget gap of 22 percent); Arizona (-$2 billion, 19.9 percent); Florida (-$5.1 billion, 19.9 percent); and Nevada (-$1.2 billion, 16 percent).