Monday, December 5, 2011

National Governors Association: State governments are feeling the squeeze


The National Governors Association and the National Association of State Budget Officers released a report today confirming most state legislatures are still facing difficult economic situations.

The Fall 2011 Fiscal Survey of States shows overall general fund spending by state legislatures are still at pre-recession levels. While revenues have declined, demand for core government services like education, transportation, and public safety continues to increase putting states in a difficult position.

Washington is feeling the pinch too. Despite cutting over $10.5 billion from the state’s general fund budget in the past three years, we are facing another $2 billion budget deficit.
The governor laid out two different plans to address the budget shortfall – an all-cuts budget and an alternative plan that would “buy back” some of the cuts with a temporary sales tax increase. The new revenue would restore about $411 million in cuts to education, $42 million for long-term care and developmentally disabled services, and $41 million in public safety.
The Legislature held public work sessions this week to discuss the governor’s proposals.


To read this blog post in Spanish, go here.

Apture