States see revenues increasing in fiscal 2011, but challenges remain
NEWS IN BRIEF — Posted Dec. 13, 2010
States expect their fiscal 2011 general fund revenues to be $26 billion greater than fiscal 2010. However, states still face significant budget deficits next summer as funding from the 2009 economic stimulus package expires, according to the National Assn. of State Budget Officers' Fall 2010 Fiscal Survey of States, released Dec. 1.
States anticipate receiving $636 billion in revenues in fiscal 2011. However, state revenues lag behind the pre-recession peak of $680 billion in fiscal 2008.
States closed $230 billion in budget deficits between fiscal 2008 and fiscal 2011. But significantly more cuts or new revenues will be needed to make up for the loss of stimulus funding beginning in July 2011 for most states. The stimulus package provided about $107 billion to states in fiscal 2010 and $89 billion in fiscal 2011, including tens of billions in additional Medicaid funding.
The report is available online (link).
Note: This item originally appeared at http://www.ama-assn.org/amednews/2010/12/13/gvbf1213.htm.