The National Conference of State Legislatures, meeting In Boston this week, released its preliminary review of state finances today. Here's the press release.
...based on the information provided by the 45 reporting states, state fiscal health is in transition.
“State budgets were strong through FY 2007,” said NCSL President and Texas Senator Leticia Van de Putte. “But we’re now starting to see a downward trend. This is a cause for concern as we think about FY 2008 and beyond.”
I was surprised at this finding from the longer report (not available to post).
Eight states project revenue growth above 5 percent, with none of these above 10 percent. Thirty-three states expect revenues to rise between 0.3 percent (Arkansas) and 4.9 percent (Washington).
Would have expected we would have been among the top revenue-gainers.
Stateline.org has a good overview with a two very nifty graphics.
Most states are sitting on comfortable budget cushions, but falling home sales, higher energy prices and skimpier sales tax collections could bust some state budgets this year.“We’ve seen the peak in state balances,” said Corina Eckl, director of fiscal affairs for the National Conference of State Legislatures, concluding that “state finances are in transition” and heading downward.
And this coverage of the report from the AP story in the Bellingham Herald sounds a familiar theme.
Despite worries about a downturn, Legislatures found several ways to increase spending.
The biggest jump in fiscal 2008 spending was to Medicaid, which grew overall by 8.1 percent, followed by spending on higher education, K-12 education and prisons.
While the state economy remains strong, there's no way we'll be unaffected by a national slowdown.
