Thirty-three states, about two-thirds, report declining revenues and more than half of states have exceeded spending levels projected in their fiscal year 2003 budgets, according to the NCSL State Budget Update released Friday. The 50 states have a collective $17.5 billion budget gap that must be filled before FY 2003 ends, which is June 30 for most states. This accounts for about 3.6 percent of FY 2003 budget, but the total could rise if revenue collections continue to decline.
In most states, spending needs are outpacing projected budget levels, particularly in the area of Medicaid and health care costs, said NCSL Executive Director Bill Pound. In addition, 24 states will have new governors this spring, responsible for drafting the budgets that state lawmakers start with.
Only 10 states report a stable budget outlook Florida, Hawaii, New Mexico, North Dakota, Rhode Island, Tennessee, Utah, Washington, West Virginia, and Wyoming.
Powered by