
State Budget Update: June 2008
Published July 2008
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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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