Findings from the biannual report, "The Fiscal Survey of States," released by the National Governors Association (NGA) and the National Association of State Budget Officers (NASBO) last month, show fiscal year 2010 presented the most difficult challenge for states' financial management since the Great Depression. To address falling revenues and meet balanced budget requirements, states have dramatically reduced spending from $687.3 billion in fiscal 2008 to $612.9 billion in fiscal 2010. States will have to make additional spending cuts or increase taxes to close their budget gaps, according to the report.