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State Budget Update: June 2008

State Budget Update:  June 2008

Published July 2008


LEGISLATORS AND STAFF: 

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Introduction

Fiscal year (FY) 2008 stands out in sharp contrast to FY 2007, when nearly
every state reported stable fiscal conditions. One year ago, states held an
aggregate year-end balance nearing 10 percent of general fund spending.
Based on revenue and expenditure forecasts, policymakers anticipated FY 2008
balances would fall. But the decline in state finances was worse than
expected. As the fiscal year ensued, a growing number of states were faced
with widening budget gaps.

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