Monday, June 20, 2011

State Budgets: A Resource

The National Conference of State Legislatures report, State Budget Update, provides valuable information for understanding the current budget climate across the states. While it isn’t a surprise that states are still facing budget shortfalls as the economy continues to recover, NCSL’s report provides the details on the progress being made and the challenges still faced by states. The report states that while a number of states are projecting continued budget gaps in FY2013 (marking the 5th year in a row for budget shortfalls in many states), improving revenue performance is helping in the reduction and elimination of gaps in states. Some of the highlights in the report include:

  • Eighteen states reported new gaps since the beginning of FY 2011. The sum of these imbalances currently stands at $13.4 billion, half as much as the figure states reported in November 2010 of $26.7 billion.
  • Twenty states and Puerto Rico reported that personal income tax collections exceeded the latest estimate. Twelve of these states saw collections surpass increased estimates.
  • Ten states and Puerto Rico saw corporate income tax receipts exceed estimates, including Alaska, North Carolina and Tennessee—states that had raised their forecasts. Eighteen states saw collections coming in on target. Ten of those states had previously increased their forecasts.
  • At least 31 states and Puerto Rico projected FY 2012 gaps. The sum of these imbalances is $86.1 billion.
  • At this time, 19 states anticipate budget gaps for FY 2013. The aggregate gap currently stands at $30.9 billion. This compares with the $66 billion gap projected just four months ago.

For strategies to support children and families, especially during tough economic times visit Strategies for Tough Fiscal Times on Policy for Results.