After at least 40 states made mid-year budget cuts in FY
2010 totaling $22 billion, the prospect for rosier times is after 2012,
according to the latest biannual Fiscal Survey of the States
conducted jointly by the National Governors Association and the National
Association of State Budget Officers. The midterm cuts meant states'
spending was reduced from $687.3 billion in FY 2008 to $612.9 billion in
FY 2010 - at the same time mandatory spending continued to increase.
The report indicates FY2011 will be challenging for many states, in
spite of modest revenue growth.
"Because states lag behind national recovery, they expect
2011 to be as bad as 2010, and states will not begin the path to
recovery until 2012," said NGA Executive Director Raymond C. Scheppach.
NGA and NASBO expect states not to see 2008 revenue levels until 2013 at
the soonest.
The Survey is available here: http://www.nga.org/Files/pdf/FSS1006.PDF.
