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More than half the states are experiencing budget shortfalls. Under state constitutions, most can't borrow money or run a deficit, making spending cuts a necessity. That has brought hiring limits and freezes in states from California to Maryland.

Ohio Gov. Ted Strickland has announced spending cuts that could lead to about 2,700 of the state's 60,000-plus workers to lose their jobs. Rhode Island Gov. Don Carcieri last week signed a revised spending plan that includes a provision to make state employees who retire after Sept. 1 pay more for their health insurance — a change that state officials say could prompt about 2,500 state workers to leave before the deadline.

In New Jersey, Gov. Jon S. Corzine is proposing to cut 3,000 state jobs through early retirement incentives and layoffs. The state's commerce and personnel departments would be eliminated.