State Budgets Better Positioned to Handle Challenges

While still vulnerable to economic shocks both domestically and from international developments, states are reporting improved revenue, spending within budgeted amounts, and the ability to shore up rainy day funds. Ten states and the District of Columbia expect to finish FY12 with year-end balances of 10 percent or more, and new budget gaps are rare and confined to a few states. Overall, state fiscal offices appear better positioned to handle the challenges ahead. Findings are from a survey of legislative fiscal directors in the summer 2012 State Budget Update from the National Conference of State Legislatures (NCSL). NCSL is quick to point out that recovery remains slow and uneven across the nation, however. Read the report...