Just three months into the current fiscal year, nearly every state government is reaping less tax revenue than predicted, leading over two dozen states to mull cuts to programs and services, according to a report released Thursday (11/1) by the National Conference of State Legislatures.
"The news is not good. With only a few exceptions, state fiscal conditions have taken a dramatic downturn," says the report. "Moreover, as legislative fiscal analysts look ahead, the outlook is bleak."
The report's major findings are troubling:
The budget outlook for the rest of the year is worrisome because economic conditions are expected to get worse before they get better.
NCSL's "State Fiscal Outlook for 2002 - October Update" takes a comprehensive look at state finances over the first few months of the current fiscal year, which began July 1 for all but four states. The information was gathered from mid- to late-October and does not fully reflect the impact of the Sept. 11 terrorist attacks.