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State Budget Belt Tightening On The Way, Says Expert

Last updated on Monday, August 8, 2011

(UNDATED) - Experts say it’s hard to tell what will happen to states now that the debt deal is done.

Indiana Fiscal Policy Institute Director John Ketzenberger says it could mean that there will be fewer federal grants for things like road construction and public safety. He says the deal with definitely lead to more belt-tightening, which he says is not a bad thing.

Ketzenberger says Indiana is in better shape than most states, since they don't face a budget deficit. He says 42 states and D.C. are looking at budget deficits and will likely face hard times with more funding cuts on the way.

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