State Budget & Tax Actions 2007: Preliminary Report

This report, item 0151-010149, is available in html and pdf freely to NCSL constituents and the media and in pdf for $30 to the general public.

Introduction

Each summer, the National Conference of State Legislatures' Fiscal Affairs Program surveys members of the National Association of Legislative Fiscal Offices (NALFO) for information on state budget and tax actions taken in their most recently completed legislative sessions. This year's survey covers fiscal years (FY) 2007 and 2008. In most states, FY 2007 budget data are based on estimates and FY 2008 budget and tax data are based on projections. Forty-five states provided overall budget information for this report. Forty-one states provided tax information .

California, Illinois, Michigan, North Carolina and Wisconsin had not completed their budgets by the time this report was written in late July. In FY 2006, these states accounted for nearly 27 percent of state general fund totals, with California alone accounting for 16 percent. Recent fiscal conditions in these states, especially in the Great Lakes region, and previous projections of low year-end balances at the end of FY 2007 suggest that final budget percentages from these states will modestly depress 50-state totals. Because budget data for these states are not included in this report, caution should be used when drawing conclusions about the status of state fiscal conditions nationally.

The information contained in this report is subject to change. Florida, for instance, recently reported that revenues are not materializing as projected in the March revenue estimate; officials now anticipate that recurring revenues will be insufficient to fund the FY 2008 budget as passed. A special session is expected in September to make decisions about budget cuts. Results from that special session and other state revisions will be included in the final report, State Budget Actions: FY 2007 & FY 2008.

Budget Highlights in FY 2007
Changes in Revenue and Spending in FY 2007
Budget Highlights for FY 2008
Revenue and Spending Projections for FY 2008
Use of Unexpected Revenue in FY 2007 and FY 2008
Spending Priorities in FY 2008
- K-12 Education
- Higher Education
- Corrections
- Medicaid
Tax Highlights in 2007
- Corporation and Business Taxes
- Sales and Use Tax
- Health Care Provider and Industry Taxes and Fees
- Tobacco and Alcohol-Related Taxes
- Motor Fuel and Vehicle Taxes
- Miscellaneous Taxes
- Fees
- Other
Figures
- Figure 1. FY 2007 State Year-end Balances as a Percentage of General Fund Expenditures
- Figure 2. FY 2008 State Year-end Balances as a Percentage of General Fund Expenditures (Projected)
- Figure 3. State Balances Fluctuate(billions of dollars)
- Figure 4. Changes in Revenues and Appropriations, FY 2007 and FY 2008
- Figure 5. 2007 Net State Tax Changes As a Percentage of 2006 Tax Collections
- Figure 6. Net State Tax ChangesBy Year of Enactment, 1998-2007*
- Figure 7. Total Tax and Nontax Revenues(in billions of dollars)
- Figure 8. 2007 Net State Tax Changes
- Figure 9. 2007 Net State Revenue Changes

See previous State Budget Actions and State Tax Actions reports, as well as State Budget Updates.

Posted 2 August 2007.
Email statefiscal-info@ncsl.org for more information.
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State Budget & Tax Actions 2007: Preliminary Report

Introduction

Contents