State Fiscal Conditions Deteriorating.

• Position: News Briefs - Brief Article

* A recently released report by the National Conference of State Legislatures confirmed what many officials already suspected: state revenues are much lower than projected as the national economy heads toward recession. Only months into the current fiscal year, 44 states reported that revenue collections have not met their conservative forecasts. Complicating matters, the rapid rise in unemployment has increased demand in several states for Medicaid and other forms of public assistance. Nineteen states reported that expenditures are currently exceeding revenues. In an attempt to maintain budgetary balance, 28 states have implemented or are considering budget cuts, while 14 states have implemented measures such as hiring freezes and travel restrictions. Still, many...