By Derrick DePledge
The National Association of State Budget Officers, in a semi-annual report released on Tuesday, said states will experience the fourth consecutive year of general-fund spending growth in fiscal year 2014.
The report echoed the optimistic economic outlook for state government in Hawaii released by the Abercrombie administration last week.
From the state budget officers:
In contrast to the dramatic state budget declines during and immediately following the Great Recession, budgets have stabilized and significant fiscal distress continues to subside for most states.
After several years of economic recovery, there are measurable improvements in the state budget environment that are shown in this report. Enacted budget cuts and budget gaps
have substantially declined, states have enacted net tax cuts in two of the last three fiscal years, and overall revenue collections have outpaced projections.
Yet, fiscal rebuilding for many states remains slow. The lingering effects of the recession are still present, as a number of states have yet to surpass pre-recession revenue and spending levels. While fiscal challenges from the modest economic recovery are likely to persist, these setbacks are not expected to cause significant budget volatility for states in fiscal 2014.
Overall, state fiscal trends indicate continued modest growth and stability.