NGA/NASBO Release State Survey Data

The Journal of Government Financial Management, Fall 2003 | Go to article overview

NGA/NASBO Release State Survey Data


Washington, D.C. (June 26, 2003)-As the fiscal year came to a close, budget data released by the National Governors Association (NGA) and National Association of State Budget Officers (NASBO) indicate that states continue to struggle with declining revenues amidst an uncertain economy, with most states unable to protect their highest priority programs from budget reductions.

According to the latest Fiscal Survey of the States, based on state budget data collected during spring 2003 by NASBO, most governors chose spending reductions coupled with revenue increases and drawing down their remaining reserve funds to balance budgets amidst ongoing tight fiscal conditions.

Fiscal 2003, which ended June 30, was a grueling year for the majority of the nation's governors. Thirtyseven states were forced to reduce already enacted budgets by nearly $14.5 billion-the largest spending cut in the history of the 27-year-old Fiscal Survey.

"In this report we find the fiscal condition in the states has not improved; balancing state budgets continues to be a difficult exercise," said Scott Pattison, NASBO's executive director.

Governors in 29 states recommended tax and fee increases in fiscal 2004, resulting in a net increase of $17.5 billion-the largest since 1979. Furthermore, state spending growth was cut to only 0.3 percent in fiscal 2003 and is expected to decline 0.1 percent in fiscal 2004.

According to the survey, the strategy has remained the same in almost every state-across-the-board, targeted reductions to programs. Few states have succeeded in exempting high priority programs such as K-12 education, Medicaid, higher education, public safety, or aid to towns and cities.

"If economic conditions remain stagnant or worsen and if budget shortfalls continue next year, the states will have exhausted many of their options for countering a weak economy. The future of these programs, which represent the highest priorities for states, could be in greater jeopardy," said Pattison.

Facts from the survey indicate that governors used a wide variety of budget management tactics in an attempt to balance their budgets in fiscal year 2003: 28 states used across-the-board cuts; 22 states drew down their rainy day funds; 17 states laid off employees; eight states offered early retirement; and 10 states reorganized agencies and programs.

A variety of other measures were used in 29 states, including refinancing state debt, hiring freezes, tobacco settlement securitization, deferred payments and fund transfers.

"Governors have reigned in spending over the past two fiscal years, with most states reporting growth rates less than the previous years. The trend will continue next year-a record high 19 states have proposed negative growth budgets," said NGA Executive Director Raymond Scheppach.

However, growth in Medicaid continues to put a severe strain on state budgets. The pressure is coming from increased state costs for pharmaceuticals and increased enrollments in Medicaid, according to a recent report from the Kaiser Commission. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

NGA/NASBO Release State Survey Data
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.