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States across the country are facing enormous deficits with budget shortfalls totaling $112 billion for the coming year. With state sales and income taxes at an all time low, federal Medicaid funding still uncertain, and stimulus money ending at the end of the year, future revenues for states look equally bleak. To balance budgets, states are slashing funding, services and programs which has led to some tough battles between governors, legislators, and citizens. Both New Jersey and Pennsylvania are still in budget negotiations. This hour, we’ll examine the financial hardships facing states with Jon Shure, Deputy Director of the State Fiscal Project at the Center on Budget and Policies Priorities and TAD DEHAVEN, a budget analyst on federal and state budget issues for the Cato Institute.