US state finances begin to stabilise

[alp227]

Source: Financial Times (google title for full article)

The finances of US states are stabilising after years of crippling deficits, but fiscal officers are concerned that global economic volatility could lead to new shortfalls.

A recent survey of legislative fiscal officers conducted by the National Conference of State Legislatures, a bipartisan research group, showed that a rebound in overall revenues that began last year is continuing, while expenditures in most states are stable.

For the first time in four years, only a few states reported new budget deficits opening during the fiscal year, which for most states began on July 1.

All but one of the 50 states must balance their budget annually. The economic recession decimated state revenues, resulting in cumulative deficits of more than $500bn since 2008 and dramatic spending cuts to close the gaps.

Read more: http://www.ft.com/cms/s/0/d575a86a-1ba3-11e1-8647-00144feabdc0.html#axzz1fL5Lr700

[snappyturtle]

1. Today it was announced (MN) that the state majically has a surplus

of $800+million! Who knew! This comes in the same week as another announcement that 72,000 people will not have heating assistance this winter!

[freshwest]

7. 'Well, there ya go.' Proves that kiling the poor off is a good thing. WTG, MN.

:sarcasm: :sarcasm: :sarcasm: :sarcasm: :sarcasm: :sarcasm: :sarcasm:

[DCBob]

2. this is an amazing turnaround... many were predicting the states fiscal crisis..

would send us back into a recession/depression. The gloom and doomers are wrong yet again.

[msongs]

3. registration required to access that site nt

[DCBob]

4. its free signup.. just need to give them a real email addr.

[alp227]

5. Google article titles and click within results to read full articles w/o registration.

[jwirr]

6. I do not think that it was just the economic recession that hurt the

states. Booosh cuts in both his terms did not help states at all. What happened is that the Fed money stopped coming to the states. They were forced to pick up the shortfalls for mandated programs and were broke long before 2008. I am glad to hear that they are getting some recovery but am wondering how much of that is from passing the buck down to the counties and cities?