Flow of red ink slows.

• Position: Statestats, fiscal improvement - Brief Article

The state fiscal crisis appears to be ebbing. For three consecutive years, nearly every state experienced a flow of red ink. But a recent NCSL survey reveals that conditions are improving. The combination of spending cuts and an improved revenue picture show many states projecting modest year-end balances by the end of FY 2004.

One of the most significant signs of fiscal improvement is that budget gaps (the imbalances between revenues and spending) are shrinking. More than half the states were still struggling in April 2003 to close an outstanding gap of $21.5 billion--a tall order...