States financially stable

The National Association of State Budget Officers (NASBO) and the National Governors Association (NGA) report in their annual survey that states' financial conditions remain stable, much like 2005, with states remaining wary of impending healthcare, education, and pension systems costs, to name a few concerns.

...revenue growth remains strong enough to support spending demands while reserve balances are being restored to levels adequate to begin addressing another fiscal downturn.

The survey (from data collected during spring 2006 from 49 of 50 states and representing the original budget recommendations submitted to state legislatures) also found: only four states were forced to reduce their enacted budgets; Medicare was the dominating expenditure impacting budgets; only four states reported negative growth; and states continued to support self-sufficiency social services programs for families.

The Fiscal Survey of States (June 2006, pdf, 55 pages/608 kB; available from NASBO)