Tuesday, December 11, 2007

NGA and NASBO Release Fiscal Survey of States:

NGA and NASBO Release Fiscal Survey of States: This week, the National Governors Association and the National Association of State Budget Officers released "The Fiscal Survey of States," which found that although most states experienced healthy revenue growth during fiscal 2007, some states already have seen deterioration of their fiscal conditions and expect revenue and expenditure growth to slow significantly in fiscal 2008. States' single-largest expenditure for FY 2007 was health care, which accounts for almost one-third of total state spending. The report also showed that states face challenges in funding and providing health care in fiscal 2008, including expanding the State Children's Health Insurance Program to reduce the number of uninsured children in their states, reductions at the federal level for public and other health programs and the impact of the aging population on long-term care financing. State general fund spending grew by 9.3 percent in FY 2007, significantly higher than the 30-year average of 6.4 percent. According to the report, this high growth rate is the result of states using surpluses realized in recent years to provide tax cuts and bolster spending on programs that experienced significant budget cuts in the last fiscal downturn. For FY 2008, state spending is budgeted to grow by 4.7 percent. The report states that expenditures typically include one-time spending from surplus funds, transfers into reserve funds and payments to local governments to reduce property taxes. To view the full report visit: http://www.nga.org/Files/pdf/FSS0712.PDF

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