CBPP Statement
For Immediate Release
Thursday
, August 9, 2007

Contact: Shannon Spillane
202-408-1080
[email protected]


Statement Resources:
  pdf PDF (1pp.)
  E-mail to a friend
  Print

Statement Categories:
  All Reports by Date
  State Fiscal Policy

Related Analysis:
  State Expenditure Growth Slowing

CBPP Services:
  E-mail Notifications
  RSS Alerts

Center on Budget and Policy Priorities
820 First Street, NE
Suite 510
Washington, DC 20002
Tel: 202-408-1080
Fax: 202-408-1056
[email protected]
www.cbpp.org

 


STATEMENT BY NICHOLAS JOHNSON, DIRECTOR OF THE STATE FISCAL PROJECT, CENTER ON BUDGET AND POLICY PRIORITIES, ON THE NATIONAL CONFERENCE OF STATE LEGISLATURES’ SURVEY OF FISCAL CONDITIONS

Thursday, August 9, 2007

Today’s NCSL budget update should serve as a yellow flag to any states considering new tax cuts, which a number of states have enacted in recent months.  State tax revenues aren’t keeping pace with the cost of providing services.  Instead, many states are relying on past years’ surplus funds to balance their budgets, a sign of an ongoing imbalance between revenues and spending. 

While revenues are weakening, state spending has moderated and nationwide is no bigger as a share of the economy than it was eight years ago.  In many states, spending remains below pre-recession levels by that measure.

The new data suggest that next year, many states will have to choose between tax cuts and addressing needs in areas like transportation, education, health care, and public safety.  States also need to strengthen their budget reserves to prepare for future economic downturns.

A related analysis of state budgets can be found on the Center’s web site: 

State Expenditure Growth Slowing
By Elizabeth C. McNichol, Nicholas Johnson and Sarah Farkas

https://www.cbpp.org/7-31-07sfp.htm
https://www.cbpp.org/7-31-07sfp.pdf 5pp.

# # #

The Center on Budget and Policy Priorities is a nonprofit, nonpartisan research organization and policy institute that conducts research and analysis on a range of government policies and programs.  It is supported primarily by foundation grants.