A new report by the National Governor's Association (NGA) and the National Association of State Budget Officers (NASBO) paints a dire picture of the fiscal health of state governments from coast to coast. Ballooning debts made worse by trickling revenues and a stagnant economy could spell trouble for some educational technology programs, as states search for ways to staunch the bleeding.

According to "The Fiscal Survey of States," 37 states cut their 2002 enacted budgets by more than $12.8 billion—and 23 states already have said they plan to reduce net enacted budgets by more than

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