Update on State Budget Shortfalls
The National Association of State Budget Officers (NASBO) last month released an update on the state fiscal situation (PDF). Some highlights:
- All state FY 2010 enacted budgets, added up, are 5.4% lower than the previous year, which itself was a 3.4% decline than the year before that. These are the first declines since 1983.
- After enactment of FY 2010 state budgets, $108.7 billion in gaps opened, of which $18.9 billion were outstanding. The $89.8 billion in closing was made up of $23.9 billion in increased taxes and fees, $7.7 billion in gimmicky revenue changes (deferring tax cuts, raiding funds, amnesties), and at least $55.7 billion in reductions in planned spending.
- Budget gaps estimated for FY 2011 stand at $55.4 billion; for FY 2012, $61.8 billion.
- 41 states have seen revenue come in lower than they had projected for FY 2010.
- 24 states have cut their desired spending for FY 2010 by more than 5 percent.
- In January 2010, state governments eliminated 18,000 jobs.
More on state budgets and taxes here.
Was this page helpful to you?
Yes!
No
Thank You!
The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?
Contribute to the Tax FoundationShare This Article!
Let us know how we can better serve you!
We work hard to make our analysis as useful as possible. Would you consider telling us more about how we can do better?
Give Us Feedback