At statehouses around the country, the Great Recession is far from over: It could take years for many states to climb out of the hole and return to pre-downturn spending levels.
An Associated Press examination of 50 balance sheets shows state budgets and bank accounts still ravaged by a drop in tax revenue. Many states are also facing enormous long-term pension and health care obligations. At the same time, the payout of stimulus money from Washington that helped many states in their darkest hours has come to an end.
While some states saw a modest jump in tax collections this spring, the combined revenue projected by the 50 states in the coming fiscal year - $734 billion - is still down by about $34 billion, or 5 percent, from the 2007-08 fiscal year, when the recession began.
Some states are in far worse shape. New Jersey, Nevada, Oregon, Illinois and Louisiana reported deficits that are more than 20 percent of the state general fund.
Even as many states begin a gradual recovery, analysts expect it will be several years before they are spending again at the levels seen before the recession.
In Georgia, for example, revenue has jumped by more than 8 percent from the previous fiscal year. But Republican Gov. Nathan Deal said he wants to use the bulk of the extra cash to replenish the state's depleted rainy day fund.
"My goal is to make sure we are on a firm financial footing," Deal said. "I think we need to be very, very cautious in our spending."
The AP collected a variety of budgetary and fiscal data from its statehouse bureaus across the country as part of a yearlong effort to examine the fiscal crises playing out across the country. The information was collected through early May and will be updated periodically throughout the year by AP's network of state government reporters, providing real-time information about state budgets and finances.
The data provides a detailed look at a moment in time when most states are struggling with deficits, spending cuts and long-term costs that threaten to restrict their spending for decades to come.
Some of the details:
- Twelve states started the year with deficits that were equal to 15 percent or more of their general fund, the budget that covers day-to-day operations.
- States with the highest per capita number of Medicaid recipients were among those with the largest budget deficits, as a percentage of general fund revenue.
- Twenty states enjoy general fund budgets that exceed their 2007 levels, while the remaining 30 states are still running behind.
- Tax revenue in Arizona, hit hard by the housing collapse, remains 19 percent below 2007 levels, the largest difference among the states. Next are California and Florida at 18 percent, and Michigan and Tennessee at 17 percent.
- The 50 states have a combined $689.5 billion in unfunded pension liabilities and $418 billion in retiree health care obligations. Five states have unfunded public employee pension liabilities of $50 billion or more.
http://hosted.ap.org/dynamic/storie...Y_THE_NUMBERS?SITE=FLTAM&SECTION=US&TEMPLATE=
Meanwhile Obama rides his Unicorn and tells the sheep how great a job he is doing.
An Associated Press examination of 50 balance sheets shows state budgets and bank accounts still ravaged by a drop in tax revenue. Many states are also facing enormous long-term pension and health care obligations. At the same time, the payout of stimulus money from Washington that helped many states in their darkest hours has come to an end.
While some states saw a modest jump in tax collections this spring, the combined revenue projected by the 50 states in the coming fiscal year - $734 billion - is still down by about $34 billion, or 5 percent, from the 2007-08 fiscal year, when the recession began.
Some states are in far worse shape. New Jersey, Nevada, Oregon, Illinois and Louisiana reported deficits that are more than 20 percent of the state general fund.
Even as many states begin a gradual recovery, analysts expect it will be several years before they are spending again at the levels seen before the recession.
In Georgia, for example, revenue has jumped by more than 8 percent from the previous fiscal year. But Republican Gov. Nathan Deal said he wants to use the bulk of the extra cash to replenish the state's depleted rainy day fund.
"My goal is to make sure we are on a firm financial footing," Deal said. "I think we need to be very, very cautious in our spending."
The AP collected a variety of budgetary and fiscal data from its statehouse bureaus across the country as part of a yearlong effort to examine the fiscal crises playing out across the country. The information was collected through early May and will be updated periodically throughout the year by AP's network of state government reporters, providing real-time information about state budgets and finances.
The data provides a detailed look at a moment in time when most states are struggling with deficits, spending cuts and long-term costs that threaten to restrict their spending for decades to come.
Some of the details:
- Twelve states started the year with deficits that were equal to 15 percent or more of their general fund, the budget that covers day-to-day operations.
- States with the highest per capita number of Medicaid recipients were among those with the largest budget deficits, as a percentage of general fund revenue.
- Twenty states enjoy general fund budgets that exceed their 2007 levels, while the remaining 30 states are still running behind.
- Tax revenue in Arizona, hit hard by the housing collapse, remains 19 percent below 2007 levels, the largest difference among the states. Next are California and Florida at 18 percent, and Michigan and Tennessee at 17 percent.
- The 50 states have a combined $689.5 billion in unfunded pension liabilities and $418 billion in retiree health care obligations. Five states have unfunded public employee pension liabilities of $50 billion or more.
http://hosted.ap.org/dynamic/storie...Y_THE_NUMBERS?SITE=FLTAM&SECTION=US&TEMPLATE=
Meanwhile Obama rides his Unicorn and tells the sheep how great a job he is doing.