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Report: State deficits loom despite stimulus

The federal government paid out all but $1 billion of the anticipated $49 billion in stimulus money for states and localities for fiscal 2009, a Congressional watchdog reported Sept. 23. But while stimulus dollars helped states patch holes in their budgets, "states will continue to be fiscally strained," the U.S. Government Accountability Office said in its latest bimonthly report of how 16 selected states are using and tracking their recovery money.

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