Fiscal Survey of States, Spring 2013




After several years of slow recovery in the national economy, fiscal distress is finally beginning to subside for most states. However, the unemployment rate continues to remain high and the economic recovery is relatively weak compared to other post-recessionary periods. Thus, state operating budgets likely will be constrained by elevated expenditure pressures and slow revenue growth in the upcoming fiscal year. Additionally, states are challenged with providing resources for critical areas that were cutback in the recession, declining federal funds for state programs subject to sequestration, and continued spending demands in areas directly impacted by the sluggish economy,
such as Medicaid, higher education and corrections.

Spring 2013
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