WASHINGTON - States are facing at least four years of slowed revenue growth, reduced spending to levels not seen for nearly 30 years, and forced budgets cuts of as much as $200 billion during fiscal 2009 and 2010 alone, officials from the National Governors Association and the National Association of State Budget Officers said yesterday.

And while state and local governments have often turned to the municipal bond market in past times of fiscal hardship, current market conditions will likely throw a wrench in a state's ability to use munis as an alternative to pay-go spending, officials said at a press conference when they released their biennial report, the Fiscal Survey of States, which examines budget trends.

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