From the Center on Budget and Policy Priorities
States face a serious fiscal problem that could force them to institute additional deep budget cuts and tax increases in 2010. The federal assistance that states received for their Medicaid programs is scheduled to end on December 31, 2010, and the assistance states received for education and other services also will be largely exhausted by then.
Presuming they will get no more fiscal relief, states will have to take steps to eliminate deficits for state fiscal year 2011 that ..could cost the economy 900,000 jobs next year.