Tough Fiscal Times for the States: How Did We Get Here Implications for the Future

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Tough Fiscal Times for the States How Did We Get
Here?Implications for the Future

• National Governors Association
• Institute for Governors' Education Policy
  Advisors
• April 4, 2003
• Scott Pattison
• Executive Director
• National Association of State Budget Officers

444 North Capitol Street, NW, Suite 642
Washington, DC 20001 [phone]
www.nasbo.org
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General funds grew at historically high levels,
until the boom ended
Source NASBO, Fiscal Survey of States
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State budgets in the late 1990s historic boom
followed by bust
Source NASBO, Fiscal Survey of States
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The stock market impact
Source Federation of Tax Administrators
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Revenues have shrunk
Source Fiscal Studies Program, Rockefeller
Institute of Government
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Economy is uncertainconsumer confidence is down
Source Economy.com
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Every part of the budget impactedby tough times
Source NASBO, 2001 State Expenditure Report
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Whats in all other?

• Public health
• Parks and recreation
• State police
• Employer contributions to pensions and benefits
• Information Technology
• Care for mentally ill and disabled
• Environmental
• Housing
• General aid to local government

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K-12 spending
Source NASBO, 2001 State Expenditure Report
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K-12 spending
Source NASBO, 2001 State Expenditure Report
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K-12 spending
Source NASBO, 2001 State Expenditure Report
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K-12 spending
Source NASBO, 2001 State Expenditure Report
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Higher education spending
Source NASBO, 2001 State Expenditure Report
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Higher education spending
Source NASBO, 2001 State Expenditure Report
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Prepare for the future

• State revenue has always been cyclical
• Revenue will begin to meet projections
• -Maintain a long term vision-

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• www.nasbo.org

444 North Capitol Street, NW, Suite 642
Washington, DC 20001 [phone]
www.nasbo.org