While states can expect to receive more than $150 billion through fiscal 2011 from the economic stimulus package, they still will face severe budget gaps for at least a year after that until tax revenues return to pre-recession levels, according to a new report by the Rockefeller Institute of Government.

"Even under optimistic assumptions, the revenue recovery will not be sharp enough or soon enough to avoid the need for significant budget cuts or tax increases," said the report, which was authored by Don Boyd, a senior fellow at the institute.

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