One reason has been violent crime, several government officials and independent economists said.
Independent economists say further rises will be necessary this year.
Independent economists say the changes to date represent only small steps.
The figure was in line with forecasts by independent economists.
Independent economists estimate that up to one million workers have lost their jobs since January.
State officials and independent economists expect Washington to close the gap on the state's estimated $20 billion in damage.
The Government says it can cut the deficit to 2.9 percent, but most independent economists were skeptical of that even before today's news.
Independent economists predict that consumer prices will rise by 800 percent this year.
But many independent economists think the industry exaggerates the potential damage.
Still, many independent economists are pessimistic about an economy where unemployment remains at 15 percent.