Utah in good fiscal health compared to other states
The situation looks even worse for the fiscal year that begins July 1 in most states.
"Whether or not the national economy is in recession — a subject of ongoing debate — is almost beside the point for some states," said the report to be released today by the National Conference of State Legislatures.
Utah's situation, thanks to conservative budgetary forecasts and not spending one-time money on ongoing needs, is much sunnier by comparison.
"Utah is in a relatively healthier fiscal situation than most states, and in fact, one of only 10 states to project a stable outlook for revenues" for the 2009 fiscal year, NCSL fiscal analyst Arturo Perez told the Deseret News.
In comparison, three states' fiscal directors had a brighter outlook for their states' finances, saying their situation was "optimistic," Perez said. Thirty-four, including Puerto Rico, said it was "of concern," and four were "pessimistic."
Anticipating a revenue shortfall, the Legislature earlier this year socked away $100 million in a savings account of sorts for public schools and colleges, and left $15 million unspent in the fiscal 2009 budget, which goes into effect July 1, according to the Utah section in the report. That money is in addition to $414 million lawmakers put in "rainy day funds" over the years. The Utah data in the report is based on information compiled by the Utah fiscal analyst's office.
The Legislature "approached future revenue growth with caution, and that's one thing the state's been fairly good at," Allred said. "It does require some fiscal discipline up front."
Nationally, the weakening economy is hitting tax revenue in a number of ways: People's discretionary income is being gobbled up by higher food and fuel costs, while the tanking housing market means people are spending less on furniture and appliances associated with buying a house.
The situation is grim in Delaware, with a $69 million gap this year, and bleak in California, with a projected $16 billion budget shortfall over the next two years, the report said. Florida does not expect a rapid turnaround in revenue because of the prolonged real-estate slump there.
By mid-April, 16 states and Puerto Rico were reporting shortfalls in their current budgets as the revenue those budgets were built on — typically taxes — fell short of estimates. That's double the number of states reporting a deficit six months ago.
Recent comments
Ron Paul is the ONLY candidate that would have gotten us out of Iraq…
Don't Get Fooled Again | April 25, 2008 at 3:48 p.m.
Better days ahead, vote Democrat and you will get more of the Pelosi…
Local Control & Self Governance | April 25, 2008 at 9:13 a.m.
Optimism is a nice thing, but I don't share it in this case. I don…
Earl | April 25, 2008 at 8:30 a.m.
