e. levin for states but so far 24 states are reporting they do have a budget gaps expected in 2011 so about half the states in 2011 expect a budget gap and i would expect that would grow also. let me talk about revenue collections in this report. no surprise to anyone revenue collections are down significantly in all sources of revenue. there are numerous reports recently just finishing up this spring collection period for states that have demonstrated both anecdotally and other wise very significant declines in revenue for the states. currently we are seeing in this report is an overall aggregate 6.1% decline year-over-year in state revenues in the three major sources of revenue, that's sales, personal income and corporate income tax. in 2009 the current fiscal year revenues exceeded expectations and only two states, wyoming and north dakota, which tended to be anomalies and we had budget gaps where forecasts were not met in 38 states. and again i would not be surprised as we and the fiscal year from the state's june 38th if that number might grow. specifically sales tax collections were 3

e. levin you would start to see budgets come close to 2008 levels and then we would see growth budgets in 2012. but if the severity and length of the recession continues then it could go further. but as ray and others have said, too, the problem is we have difficult structural issues before word just in terms of all kinds of cost drivers, like corrections costs for prisons and so the question is as the recovery money ends how much is made up by an increase in revenue from an improved economy lag in terms of growth rates for budgets not on till fy 12. >> the only other comment i would make is if the on employment begins to come down, then you consume state revenues will begin to come out, but the big problem here is the medicaid growth is going to be very, very late in the cycle. and if you don't get a very strong uptick, that growth is cooling to be a huge problem for several years to come. >> and i just want to add, too, another reminder because i think it is so important from the revenue side most states, particularly those with personal income taxes, are extremely dependent on the weal