States' revenues improve

"Only five states revenues were below their budget projections" in fiscal 2005, according to a survey conducted by the National Governors Association (NGA) and the National Association of State Budget Officers (NASBO). Survey results further say that Medicaid is the major component of state spending and continues to outpace revenue growth. Data for the survey are reported by states on their general fund budgets which make up about half of state expenditures.

Scott Pattison, executive director of NASBO, states, "As states look forward to 2006, governors are facing revenues that will likely perform above estimates, less profound expenditure growth, and a decline in total balances."

Fiscal Survey of States, June 2005
(available in PDF, 210K, from NASBO)