Already, 22 states have a collective budget shortfall of at least $37 billion; if the current slowdown follows the path of previous recessions, 35 to 40 states could face budget cuts in 2009.

The Project for Excellence in Journalism’s annual report finds that the current crisis in journalism may be less the loss of audience than the decoupling of news and advertising. On the upside, some news organizations have become places of risk and innovation with growing connection with audiences.