State governments across the United States are just a few months into their fiscal years and already many fear that tax revenues are running short of forecasts. This is getting to be an annual ritual. Officials in New York, California, Florida and Washington this year have all expressed concerns about the outlook.

Sue Urahn, managing director for the Pew Center on the States, discusses what progress has been made, suggests actions states must take and offers solutions states should consider.

The debt-ceiling debate in Washington is being watched closely in state capitals, as a U.S. default, or a lowering of the country's bond rating, will have a ripple effect in states and communities across the nation. more

As negotiations over a major deficit reduction package appear to be going nowhere over the weekend, federal and state officials, financial and corporate executives, and average investors and consumers suddenly face the very real threat of the first-ever default on U.S. debt, a possibility that once seemed unthinkable. more

Failure to raise the federal debt ceiling could cripple state and city capital projects across the country, including wiping out funding for building schools and roads, according to a report on Wednesday. more