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State budget issues, 2011-2012
| Budget policy on Ballotpedia |
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| State budget and finance information |
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The National Conference of State Legislatures report found that 15 states had operating budget gaps for FY2011 amounting more than $26 billion.[1][2][3]
Leading up to 2011, state tax revenue increased compared to what it was a year before. Some economists expected national economic growth to be around 3-4% range in 2011. In the third quarter of 2010, overall state revenues were down 7 percent compared to two years earlier.[4]
- See also: State budget issues, 2010-2011
See also: Find your state budget
Debt deal approved
On August 2, the United States Senate passed a bill that cut spending, increased the debt ceiling, and created a committee responsible for additional cuts. President Obama signed the bill. The plan cut nearly $1 trillion in government spending over the next 10 years and raised the borrowing limit by $400 billion immediately.[5]
State deficits data
FY2013 projected budget gaps
Twenty-four states anticipated budget gaps for FY 2013. Of the 19 states that provided an estimate for FY2012, the sum of projected imbalances was $66 billion.[2]
FY2012 projected budget gaps
Thirty-five states project budget gaps in FY 2012, amounting to at least $82.1 billion as calculated by the National Conference of State Legislatures.[2]
FY2010 budget gaps
In 2010, 48 states reported budget gaps, amounting to a total debt of $1.8 trillion according to State Budget Solutions.
Pensions
For detailed information see Public pensions.
State and local governments promised $3.35 trillion in benefit plans and underfunded these plans by $1 trillion.[6]
Click here for a chart detailing the pension liabilities for each state according to PEW and AEI.
Stimulus Funds
States were supported by $160 billion in federal stimulus funds set to expire by FY2012.[3][2]
The estimated increase from the temporary increase in the Federal Medicaid Assistance Percentage (FMAP) from the American Recovery and Reinvestment Act was $87 billion over 27 months, which began in October 2008 and ended in December 2010.[7] Medicaid enrollment increased by 6.0 percent during fiscal year 2009.[7]
Unemployment Insurance
States were supported by $41 billion in loans from the federal government to help cover the cost of unemployment insurance.[8] Beginning in 2011, states had to make $1.4 billion in interest payments on those loans.[9]
Rainy Day Funds
Because prior economic downturns resulted in lower than anticipated revenue collections, states established “rainy day” accounts during times of economic expansion to help stabilize budgets from future declines in tax collections. These accounts were intended to mitigate the disruption to state services during economic downturns.[7]
Total Year-End Balances as a Percentage of Expenditures, Fiscal 2009 to Fiscal 2011 (number of states)[7]
| Percentage | Fiscal 2009 (Actual) | Fiscal 2010 (Estimated) | Fiscal 2011(Recommended) |
|---|---|---|---|
| Less than 1.0% | 11 | 14 | 15 |
| 1.0% to 4.9% | 16 | 16 | 17 |
| 5.0% to 9.9% | 14 | 12 | 10 |
| 10% or more | 9 | 8 | 8 |
See also
Footnotes
- ↑ Watchdog.org “National Conference of State Legislators gathers over ‘dire’ numbers” Dec. 9, 2010
- ↑ 2.0 2.1 2.2 2.3 National Conference of State Legislatures “State Budget Update: November 2010” Dec. 7, 2010
- ↑ 3.0 3.1 CBSNews.com 60 Minutes “State Budgets: The Day of Reckoning” Dec. 19, 2010
- ↑ Stateline.org "State budget outlook: the worst isn't over" Jan. 13, 2011
- ↑ Debt Limit Deal
- ↑ USAToday "Our view on public pensions: Lavish benefits hurt states" Jan. 20, 2011
- ↑ 7.0 7.1 7.2 7.3 "The Fiscal Survey of States" National Governors Association and National Association of State Budget Officers June 2010
- ↑ CNNMoney.com
- ↑ State Budget Solutions “States Bracing to Pay for High Cost of Unemployment Insurance Loans” Jan. 11, 2011
