State Budget Update State Budget Update & &
Discussion of State Fiscal ConditionsDiscussion of State Fiscal Conditions
Presented by Corina Eckl
Fiscal Affairs Program
National Conference of State Legislatures
State YearState Year--End Balances End Balances as a Percentage of General Fund Spendingas a Percentage of General Fund Spending
12.2%
10%
8.9%
0%
3%
6%
9%
12%
15%
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Recession
Projected
43 states reporting for FY 2007–FY 2009.
State Balances FluctuateState Balances Fluctuate(billions of dollars)(billions of dollars)
*43 states reporting for FY 2007 – FY 2009.
$9.6$18.3
$23.2$31.5
$21.7$30.0 $32.4
$7.5
$15.7
$23.2
$39.4
$30.6 $15.4 $7.8
$17.2
$34.0
$46.4
$70.9
$52.3
$45.4$40.2
$0
$10
$20
$30
$40
$50
$60
$70
$80
FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009Projected
billi
ons
of d
olla
rs
TotalGeneral Fund Ending BalanceRainy Day Funds
FY 2008 YearFY 2008 Year--End Balances End Balances as a Percentage of General Fund as a Percentage of General Fund BalancesBalances
Rhode Island
Delaware
District of Columbia
Puerto Rico
U.S. Virgin Islands
0.1% to 4.9%, n = 9
More than 10%, n = 14
5% to 9.9%, n = 19
0%, n = 1
Not reporting, n = 7 states
FY 2009 YearFY 2009 Year--End Balances End Balances as a Percentage of General Fund as a Percentage of General Fund BalancesBalances
Rhode Island
Delaware
District of Columbia
Puerto Rico
U.S. Virgin Islands
0.1% to 4.9%, n = 13
More than 10%, n = 8
5% to 9.9%, n = 18
0%, n = 3
Not reporting, n = 7 states
Less than 0%, n = 1
Projected Percentage Changes in Projected Percentage Changes in Revenue and AppropriationsRevenue and Appropriations
*43 states reporting.
2.2%
1.5%
-0.4%
6.8%
-2%
0%
2%
4%
6%
FY 2008 FY 2009
RevenueAppropriations
$49.1
$78.4
$36.3$26.9
$40.3$37.2
$29.9
$5.3
$0.7
$12.8
$37.0
$0
$20
$40
$60
$80
$100
2001 2002 2003 2004 2005 2006 2007 2008 2009
Fiscal Year
Bill
ions
of
Dolla
rs
$79.0$83.7
State Budget GapsFY 2001-FY 2009 (projected)
No estimate
No estimate
Amount After Budget Adoption
Amount Before Budget Adoption
Source: NCSL survey of legislative fiscal offices, various years. (*) Also includes data for Puerto Rico.
17 States 43 States 42 States 42 States 33 States 26 States 17 states 20 states 31 states*
FY 2008FY 2008 Budget Gaps Budget Gaps as a Percentage of General Fund Budgetas a Percentage of General Fund Budget
Source: NCSL survey of state legislative fiscal offices, June 2008.
District of Columbia
Puerto Rico
U.S. Virgin Islands
5% to 10%, n = 3
1% to 4.9%, n = 14
Less than 1%, n = 1
Not reporting or not applicable, n = 31
Rhode Island
Delaware
More than 10% = 2
FY 2009FY 2009 Budget Gaps Budget Gaps as a Percentage of General Fund Budgetas a Percentage of General Fund Budget
Not reporting or not applicable, n = 21
Rhode Island
Delaware
Source: NCSL survey of state legislative fiscal offices, June 2008.
District of Columbia
Puerto Rico
U.S. Virgin Islands
5% to 10%, n = 11
1% to 4.9%, n = 13
Less than 1%, n = 2
More than 10% = 6
FYFY 2008 Tax Collections 2008 Tax Collections (Compared with the Latest Estimate)(Compared with the Latest Estimate)
Source: NCSL survey of state legislative fiscal offices, June 2008.
Personal Income Tax General Sales Tax
Corporate Income Tax Other Taxes
Above Estimate
On Target
Below Estimate
Not applicable
Actions to Balance FY 2009 Budget: Actions to Balance FY 2009 Budget: Spending ActionsSpending Actions
Across-the-board budget cuts (10 states)Targeted program cuts
Higher education (12 states)K-12 education (11 states)Medicaid (10 states)Corrections (nine states)Aid to local government (eight states)TANF (three states)
Actions to Balance FY 2009 Budget: Actions to Balance FY 2009 Budget: Employee ActionsEmployee Actions
Layoffs (four states)Travel ban (six states)Reduced benefits (six states)Hiring freeze (nine states)Less-than-full contributions to retirement funds (four states)Salary freeze (three states)Early retirement program (one state)
Actions to Balance FY 2009 Budget: Actions to Balance FY 2009 Budget: Tax or Fee IncreaseTax or Fee Increase
Tax Increase (seven states)Fee Increase (eight states)
Actions to Balance FY 2009 Budget:Actions to Balance FY 2009 Budget:Tapped Rainy Day Funds or Other FundsTapped Rainy Day Funds or Other Funds
Rainy Day Funds (six states)Other Funds (14 states)
Actions to Balance FY 2009 Budget:Actions to Balance FY 2009 Budget:Borrowed from Special Funds or Tapped Borrowed from Special Funds or Tapped Tobacco FundsTobacco Funds
Borrowed from Special Funds (three states)Tapped Tobacco Funds (nine states)
Actions to Balance FY 2009 Budget:Actions to Balance FY 2009 Budget:Miscellaneous Miscellaneous
Delayed capital projects (seven states)Shifted Pay-as-You-Go to Debt (six states)Expanded gambling (four states)Tax amnesty (two states)Purchase freeze (three states)
For More InformationFor More Information
www.ncsl.org
