Standard & Poor's: state budgets to remain tight for another year.
Position | News & Numbers - Brief Article |
State economic recovery is under way, but it has been uneven and below average in many areas of the country, according to a report released in April by Standard & Poor's Ratings Services.
A review of fiscal 2005 state budget proposals indicates that while revenue recovery is proceeding, structural budget balance has not returned for many states, and there will be limited progress in restoring reserves. Fiscal 2005 marks the fourth consecutive year that budget deliberations have focused on imbalances for a majority of states.
"While most states are experiencing economic and fiscal recovery, there is still some downside risks to state budgets and revenue performance that could continue to exert near-term pressure on credit, and delay the return to a positive credit environment over the longer term," said Robin Prunty, a Standard & Poor's credit analyst.
Standard & Poor's has evaluated the proposed fiscal 2005...
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