WASHINGTON — States are likely to increase debt issuance to plug operating budget shortfalls as federal aid declines and their tax revenues lag the economic recovery, Standard & Poor’s said yesterday in a report.

The 27-page report outlines the fiscal situation for all 50 states, many of which are currently planning their fiscal 2011 budgets. The pace of debt issuance to fill budget gaps could accelerate if the federal stimulus funds to states are not replenished in the period before states’ tax revenues fully return, the report said.

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