https://www.americancityandcounty.com/wp-content/themes/acc_child/assets/images/logo/footer-logo.png
  • Home
  • Co-op Solutions
  • Hybrid Work
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcast
    • Latest videos
    • Product Guides
  • Resources & Events
    • Back
    • Resources
    • Webinars
    • White Papers
    • IWCE 2022
    • How to Contribute
    • Municipal Cost Index – Archive
    • Equipment Watch Page
    • American City & County Awards
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Cookie Policy
    • Privacy Statement
    • Terms of Service
American City and County
  • NEWSLETTER
  • Home
  • Co-op Solutions
  • Hybrid Work
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcasts
    • Latest videos
    • Product Guides
  • Resources/Events
    • Back
    • Webinars
    • White Papers/eBooks
    • IWCE Expo
    • Calendar of Events
    • How to Contribute
    • American City & County Awards
    • Municipal Cost Index
    • Equipment Watch Page
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Cookie Policy
    • Privacy Stament
    • Terms of Service
  • newsletter
  • Administration
  • Economy & Finance
  • Procurement
  • Public Safety
  • Public Works & Utilities
  • Smart Cities & Technology
  • Magazine
acc.com

News


State government budgets still challenging

State government budgets still challenging

Finances have improved since the depths of the recession, but states still face a tough fiscal situation, according to a report released by the National Governors Association and the National Association of State Budget Officers.
  • Written by Michael Keating ([email protected])
  • 30th January 2012

Editor’s note: The following is the second of a five-part series on government budgets and government spending that comprise the 2012 Keating Report. The topics we are covering include: federal budgets, state budgets, public-private partnerships, local government budget trends and government construction.

Finances have improved since the depths of the recession, but states still face a tough fiscal situation, according to a report released in late November by the Washington-based National Governors Association (NGA) and the Denver-based National Association of State Budget Officers (NASBO). “The Fiscal Survey of States, Fall 2011” notes that even as states struggle with lukewarm revenue growth, they will be called on to spend more because of the economic distress caused by continued high unemployment.

“State budgets are certainly improving; however, growth is weak, and there is not enough money for all the bills coming in,” said NASBO Executive Director Scott Pattison. “State officials will still be cutting some programs, and increases in funding for any program except for health care will be rare.”

Indeed, according to the Washington-based Center on Budget and Policy Priorities (CBPP), at least 20 states have reported that tax collections for the current fiscal year will exceed the amount expected when their budgets were adopted last spring. A majority of states, however, have enacted major cuts in important public services.

“It is good news that revenues are growing again at the state level,” says Elizabeth McNichol, a senior fellow at the CBPP. “We estimate that it would take seven years at the 2011 growth rate for state revenues to get back to the pre-recession growth track — they have seemed to hit bottom and are emerging from a very deep hole.” Temporarily boosting rates on income taxes and other broad-based state taxes, and closing loopholes may bring relief, McNichol says.

“States will face considerable fiscal challenges in 2012,” says Sujit CanagaRetna, senior fiscal analyst for the Atlanta-based southern office of the Council of State Governments. “Notwithstanding the significant economic obstacles that have confronted states in the aftermath of the Great Recession, there are a number of bright sparks on the state economic landscape that offer optimism for a self-sustaining recovery. These bright sparks include a panoply of projects involving solar, wind, biotech, auto industry, aviation and export-led industries that have the potential to generate more broad-based, sustained growth at the state, regional and national levels.”

Gaming and sports betting are potential revenue sources that more states will look to tap in 2012. In 2011, legislators in Florida, Illinois and Massachusetts debated the wisdom of permitting new destination casinos in major cities, such as Chicago and Miami.

Legislators in Maine are pushing to establish a regulatory framework to guide the expansion of gambling in that state. Voters in November, however, rejected proposals that would have allowed slot machines at harness racing tracks at two sites. Voters also defeated a proposal that would have allowed a casino in Lewiston, Maine. Making online gambling legal would yield $42 billion in added tax revenues for governments over 10 years, according to a New York Post estimate.

View additional installments of our 2012 forecast as well as the 2011 Mid-Year forecast.

Related Stories

  • Higher state tax collections
  • Keating Report on government budgets and spending, 2nd half 2011
  • 2011 Keating Report on government budgets and spending

Tags: News

Most Recent


  • Boston pilot to support green energy retrofit of smaller, owner-occupied multi-family buildings
    With a historic amount of climate-related funding available from the federal government  through initiatives like the Inflation Reduction Act, communities across the United States are experimenting with the best ways to drive down carbon emissions. The latest pilot program in Boston, which has notably launched a number of initiatives to reduce building emissions this year, […]
  • EPA makes available $4.6B for cities, counties and Tribes to reduce climate pollution
    To combat rising climate pollution levels, the Environmental Protection Agency (EPA) announced Wednesday $4.6 billion in competitive grants available to cities, counties, territories and Tribal governments. The grants, which are a part of the EPA’s $5 billion Climate Pollution Grants program, are funded through the Inflation Reduction Act. They’re intended to spark community-driven environmental solutions, […]
  • Data modeling tool can project energy, efficiency savings for residential, commercial buildings
    Projecting the impact of a building’s transition to clean energy is a complicated process that involves complex data—one that might be difficult to translate for an audience of constituents at an annual town meeting or public forum. A new data set published by the National Renewable Energy Laboratory (NREL) could help administrators better quantify the […]
  • HUD awards 28 multifamily subsidized properties $18 million for green energy retrofits, modernization
    The challenges of retrofitting legacy properties to modern standards can’t be understated—both practically and fiscally. The latest investment of $18 million in funding through the Green and Resilient Retrofit Program announced last week by the U.S. Department of Housing and Urban Development (HUD) is intended to help property owners participating in assistant multifamily housing programs […]

Leave a comment Cancel reply

-or-

Log in with your American City and County account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Arbor Day Foundation and Intrinsyx Environmental offer natural solution to clean up industrial contamination in cities and towns
  • MS-ISAC members get free access to Deloitte’s Cyber Detect and Respond Portal to help respond to cyber threats
  • Deltek releases 12th annual Clarity Government Contracting Report
  • Amazon Business releases first B2B ecommerce report, highlighting e-procurement

White papers


7 Resources to Level-up Your Federal Grants Administration and Compliance

5th September 2023

Elevator Phone Line Replacement Strategy | A Guide to Reliable, Code-Compliant Solutions

29th August 2023

2023 State of Public Sourcing Report: The Bright Future of Public Procurement

23rd August 2023
view all

Webinars


Grant Preparedness: Unlocking Funding Opportunities for Your Success

10th August 2023

2023 State of Public Sourcing: Taking Local Governments into a Bright Future

1st August 2023

Stop Playing with Fire: How to Manage Infrastructure Asset Risk So You Know You’re Covered

20th June 2023
view all

PODCAST


Young Leaders Episode 4 – Cyril Jefferson – City Councilman, High Point, North Carolina

13th October 2020

Young Leaders Episode 3 – Shannon Hardin – City Council President, Columbus, Ohio

27th July 2020

Young Leaders Episode 2 – Christian Williams – Development Services Planner, Goodyear, Ariz.

1st July 2020
view all

GALLERIES


Gallery: Hottest temperatures recorded in American cities during July

12th September 2023

The top 10 Asthma Capitals for 2023

7th September 2023

U.S. cities with the cleanest air from latest “State of the Air” report

5th September 2023
view all

Twitter


Newsletters

Sign up for American City & County’s newsletters to receive regular news and information updates about local governments.

Resale Insights Dashboard

The Resale Insights Dashboard provides model-level data for the entire used equipment market to help you save time and money.

Municipal Cost Index

Updated monthly since 1978, our exclusive Municipal Cost Index shows the effects of inflation on the cost of providing municipal services

Media Kit and Advertising

Want to reach our digital audience? Learn more here.

DISCOVER MORE FROM INFORMA TECH

  • IWCE’s Urgent Communications
  • IWCE Expo

WORKING WITH US

  • About Us
  • Contact Us

FOLLOW American City and County ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2023 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.