State Budget Update: March 2007

The latest in a series of NCSL reports detailing the condition of state finances, "State Budget Update: March 2007" provides information about revenue forecasts and performance, spending overruns, and unexpected resources. It also includes a special focus on transportation.

Read the press release or consult a list of previous updates.

Constituents may download the full report free through, and the public buy it for $30 from, NCSL's on-line bookstore (item #0151010148pdf).

Introduction

State budgets continue to be strong as states approach the end of fiscal year (FY) 2007. Robust revenue performance and stable spending levels have combined to generate unexpected resources in most states. Allocating these resources has been an important discussion in 2007 legislative sessions.

Overall revenue performance continues to be stronger than anticipated in most states, although growth rates appear to be moderating and some early warning signs may be emerging. Personal income taxes and corporate income/other business taxes are performing well, with the majority of states reporting that collections are on target or exceeding expectations. Sales and use tax collections are less robust and are generating concern in some states. Other tax categories are performing with mixed results.

Largely due to higher-than-expected revenue performance, state lawmakers in 42 states have additional resources available for distribution in fiscal year (FY) 2007, FY 2008 or both. Decisions have been diverse, from funding supplemental appropriations to carrying funds forward to hedge against slowing revenue growth. Many states plan to make deposits to their rainy day funds.

This report is based on information collected from legislative fiscal directors in March 2007. It covers the revenue and expenditure situation for the first eight months of FY 2007 for most states. It includes information on revenue performance, spending overruns and anticipated uses of unexpected resources. It also includes a special focus on the leading transportation issues facing the states.

State Budget Update: March 2007
FY 2007 Revenue Performance
Unexpected Revenues and Other Resources in FY 2007
Spending Overruns in FY 2007
Special Focus on Transportation

List of 50-State Tables

Revised FY 2007 Revenue Estimates
FY 2007 General Fund Revenue Collections Through February 2007
Performance of Major Tax Categories Through February 2007
Unexpected Resources in FY 2007
Use of Unexpected Resources in FY 2007
Use of Unexpected Resources in FY 2008
FY 2007 Spending Overruns
Special Focus on Transportation

Posted April 2007.
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State Budget Update: March 2007

Introduction

Contents

List of 50-State Tables