Business Week: Florida a state with one of the "worst budget shortfalls"

Budget gap (as a % of the total budget): 19.9%
Gap: $5.1 billion

The Florida housing slump is one of the worst in the nation and only appears to be getting worse. The $66 billion Florida budget for the coming year is about $6 billion less than the one approved the previous year. It includes a $332 million reduction in public school spending and cuts to state hospitals, nursing homes, and various social programs.