States' Fiscal Condition Still Dismal, New Report Finds
State finances remain as bad as they have been in decades, and the fiscal picture isn't likely to clear up anytime soon, according to a report released this morning by the National Governors Association and the National Association of State Budget Officials.
"Fiscal 2010 presented the most difficult challenges for states' financial management since the Great Depression, and fiscal 2011 is expected to present states with similar challenges," the report says. "The severe national recession that most likely ended in the second half of calendar year 2009 has drastically reduced tax revenues from every revenue source."
And fiscal 2011 isn't looking much brighter, the groups say: A majority of states are contemplating cutting K-12 education next year as they brace for overall spending reductions for what could be the third year in a row.
State general fund spending declined an unprecedented two years in a row, in both fiscal years 2009 and 2010, the report found. It estimates that fiscal 2010 general fund expenditures will be $612.9 billion among all the states, down from $657.9 billion in the previous fiscal year—an 8 percent decline. And in their budget requests, 13 governors proposed spending less in fiscal 2011 than in fiscal 2010.
Overall, 44 states estimate that they will be spending less from their general funds in fiscal 2010 than they did in
"Fiscal 2010 presented the most difficult challenges for states' financial management since the Great Depression, and fiscal 2011 is expected to present states with similar challenges," the report says. "The severe national recession that most likely ended in the second half of calendar year 2009 has drastically reduced tax revenues from every revenue source."
And fiscal 2011 isn't looking much brighter, the groups say: A majority of states are contemplating cutting K-12 education next year as they brace for overall spending reductions for what could be the third year in a row.
State general fund spending declined an unprecedented two years in a row, in both fiscal years 2009 and 2010, the report found. It estimates that fiscal 2010 general fund expenditures will be $612.9 billion among all the states, down from $657.9 billion in the previous fiscal year—an 8 percent decline. And in their budget requests, 13 governors proposed spending less in fiscal 2011 than in fiscal 2010.
Overall, 44 states estimate that they will be spending less from their general funds in fiscal 2010 than they did in
