States Cut Social Safety Net as Deficits Grow

Widening budget deficits have prompted a majority of states to cut safety net programs including services to the elderly and disabled. The American Recovery and Reinvestment Act (ARRA) passed in February provides $787 billion for a variety of programs but the money is estimated to cover only 40% of losses to state revenues. As a result, at least 34 states have already cut services to vulnerable populations.