state budget update report spring 2013

State Budget Update: Spring 2013

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State Budget Update: Spring 2013Introduction

As the four-year anniversary of the official end of the Great Recession approaches, no strong indication exists that states are entering a robust recovery phase. Rather, states continue to move along the same path of slow and steady growth that gradually has brought them out of the economic nadir. The general outlook from state officials is one of stability, with a dose of uncertainty, as states continue to plod their way through an extended economic recovery.  
There are some exceptions. A small, but increasing, number of states report moderate to strong fiscal conditions resulting in budget surplus projections. Only a few states find themselves on the other end of the fiscal spectrum, with continuing budget difficulties. 

Even with this upbeat assessment of state fiscal conditions, uncertainty still hovers over state finances, as the impact of federal sequestration remains unclear. Some state officials are concerned about how federal fiscal policy could affect state revenues as federal government spending is reduced in both defense and non-defense program areas. 

This report is based on data collected in the spring of 2013 from legislative fiscal officers in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. It includes information on:

  • State revenue performance;
  • Areas of spending over budget;
  • Impacts of sequestration on state budgets; and
  • A summary of state fiscal situations.


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