By Bernie Becker - 06/13/11 06:28 PM EDT
Compared to 2007 levels, tax revenue had fallen the most dramatically in Arizona (19 percent), California and Florida (18 percent), and Michigan and Tennessee (17 percent). Arizona, California and Florida were all hit hard by the housing crisis.
As a group, the states also have roughly $690 billion in unfunded pension liabilities and another $418 billion or so in locked-in healthcare obligations for retirees.
A dozen states also had deficits of at least 15 percent in their general funds.
Rep. Devin Nunes (R-Calif.) and Sen. Richard Burr (R-N.C.) have introduced legislation that would expressly bar the federal government from bailing out any states that can’t pay out their pension liabilities.