The press release for the National Council of State Legislatures’ Budget Update says:
Twenty-two states have revised their FY 2008 revenue forecast. In one half of those states, including California, Florida and New York, it was lowered. The other 11 states, which include Iowa, Texas and Utah, raised their forecasts. Alaska expects an upward revision to reflect the current oil market and a recent tax change.The report finds that at least nine states and Puerto Rico reported collections were below forecast.
The National Association of State Budget Officers summary of their annual Fiscal Survey of States says:
State fiscal conditions remained strong for most states in fiscal 2007, but overall growth slowed slightly from the robust conditions of fiscal 2006. Revenues were generally stable and only one state was forced to make mid-year budget cuts. Conditions across the states varied widely, with some states cutting taxes and increasing funding for programs, and others relying on budget stabilization funds and spending cuts to address lower-than-anticipated revenues. While revenue growth was generally strong in fiscal 2007, fiscal 2008 enacted budgets reflect more modest growth, and some states have already reported budget shortfalls.
…while most states experienced healthy revenue growth during fiscal 2007, some states already have seen significant deterioration of their fiscal conditions and expect revenue and expenditure growth to slow significantly in fiscal 2008.
In fiscal 2007, state general fund spending growth was 9.3 percentâ€”approximately three percentage points above the 30-year historical state spending average of 6.4 percent. One state reported negative expenditure growth for 2007, and seven states enacted negative growth budgets for fiscal 2008. State revenue collections were up 5.6 percent in 2007, and 38 states exceeded their original budget projections, 4 states met their projections and 8 states were below projections.Statesâ€™ single largest expenditure for fiscal 2007 was health care, which accounts for nearly one-third of total state spending.