WASHINGTON, D.C. -- The National Association of State Budget Officers (NASBO) and the National Governors Association published the first of two annual Fiscal Survey of States. The survey presents aggregate and individual data on the states' general fund receipts, expenditures and balances.
The surveys were completed by governors' state budget officers in the 50 states. Fiscal 2002 data represent actual figures, whereas current year fiscal 2003 figures are estimated, and fiscal 2004 data reflect recommended budgets. The enacted budget plans (passed recently by legislatures) will be analyzed in the next edition of the Fiscal Survey.
State Spending
States trimmed spending dramatically in fiscal 2003 and in governors' fiscal 2004 budget proposals. Thirty-seven states reduced fiscal 2003 enacted budgets by nearly $14.5 billion -- the largest spending cut since 1979.
The state share of Medicaid grew by 13 percent in fiscal 2002, is estimated to be 8 percent in fiscal 2003, and is 4.9 percent based on governors' fiscal 2004 budget proposals.
In fiscal 2004, more than two-thirds of the nation's governors recommended that expenditure growth be held below 5 percent. A historically high 19 states proposed 19 negative growth budgets.
State Revenue Actions
As a parallel measure to budget cuts, governors in 29 state recommended broad-based tax and fee increases totaling $17.5 billion. The largest proposed increases are in the sales tax ($6 billion), personal income tax ($5 billion) and cigarette and tobacco taxes ($2.5 billion).
Additionally, 22 states proposed revenue measures that enhance general fund revenue but do not affect taxpayer liability totaling $3.9 billion.
When compared to originally budgeted estimates, fiscal 2003 sales tax collections were 2.5 percent lower, personal income taxes down by 8.6 percent, and corporate income tax collections were 8.3 percent lower.
In fiscal 2003, 30 states missed their revenue targets, 18 states reported that taxes were on target with original projections, and two states reported revenue collections that were higher than projected.
Forty-six states begin their fiscal years in July and end them in June. The exceptions are Alabama and Michigan, with an October to September fiscal year; New York, with an April to March fiscal year; and Texas, with a September to August fiscal year. Additionally, 20 states operate on a biennial budget cycle.
