WASHINGTON — State budget cuts will cause a drop of nearly one percentage point in the gross domestic product in fiscal year 2011 unless the federal government extends its aid to states beyond Dec. 31, 2010, when the American Recovery and Reinvestment Act programs expire, economists and budget analysts warned yesterday.

The federal government should act quickly because, without assurance of continued federal relief, governors and legislatures will start implementing budget cuts and tax increases by this summer at the latest, Mark Zandi, chief economist for Moody’s Economy.com, and analysts at the Center on Budget and Policy Priorities told reporters during a teleconference call.

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