Presentation is loading. Please wait.

Presentation is loading. Please wait.

NESTOA September 16, 2011 Scott Pattison Executive Director National Association of State Budget Officers 444 North Capitol Street, NW, Suite 642 Washington,

Similar presentations


Presentation on theme: "NESTOA September 16, 2011 Scott Pattison Executive Director National Association of State Budget Officers 444 North Capitol Street, NW, Suite 642 Washington,"— Presentation transcript:

1

2 NESTOA September 16, 2011 Scott Pattison Executive Director National Association of State Budget Officers 444 North Capitol Street, NW, Suite 642 Washington, DC 20001 (202) 624-5382 www.nasbo.org

3 NASBO 3 Current Fiscal Situation

4 NASBO 4 State Fiscal Outlook Revenue Improvement Spring Spending Pressure Health care reform Limited federal funds Significant restructuring

5 NASBO Medicaid 5 Fiscal 2011 data is based on enacted budgets and fiscal 2012 data is based on governors’ proposed budgets Source: NASBO Spring 2011 Fiscal Survey of States In Millions

6 NASBO 6 National Economic Indicators 2nd Quarter GDP grows 1.0%  8 th straight quarter of some growth; grew 0.4% in 1 st Q. Growth forecasts revised downward CBO revises GDP forecast to 1.5% in 2011 and 2.5% in 2012  NABE revises GDP forecast to 1.7% in 2011 and 2.3% in 2012 Other economic figures:  Unemployment rate unchanged at 9.1% in August CBO projects it will remain near 9% through 2012  12 Federal Reserve Districts report modest or slow growth  Manufacturing grows for 25 th straight month in August, although growth slows  Home Sales fell in July; still higher than last year

7 NASBO 7 State and Local Employment Continues to Decline State and local employment has declined 620,000 from the start of the recession through July  State employment declined 145,000 from Aug. 2008-July 2011  Local employment declined 475,000 from Sept. 2008-July 2011 State governments eliminated 23,000 positions in July alone States have also taken other personnel actions such as furloughs, early retirement, salary reduction, cuts to state employee benefits, etc. Source: Bureau of Labor Statistics

8 NASBO State Debt Level Remains Comparatively Low 8 Debt-to-GDP: U.S. States Compared to Advanced G20 Nations – Moody’s Investor Services & International Monetary Fund %

9 NASBO Tax and Fee Increases

10 NASBO 10 Current Fiscal Situation: Indicators

11 NASBO Budget Improvement *34-year historical average rate of growth is 5.7percent *Fiscal ‘12 numbers are recommended Source: NASBO Spring 2011 Fiscal Survey of States * Average

12 NASBO Budget Cuts Made After the Budget Passed ($ millions) *FY 2011 mid-year budget cuts are ongoing Source: NASBO Spring 2011 Fiscal Survey Mid-Year Budget Cuts Decline

13 NASBO FY 2012 Proposed Spending Still Less than FY 2008 ($ in billions) * FY 2007, 2008, 2009 and 2010 are actual. FY 2011 is estimated and FY 2012 is proposed..

14 NASBO 6 Quarters of Revenue Growth Following 5 Quarters of Declines Source: Fiscal Studies Program, Rockefeller Institute of Government; U.S. Census Bureau

15 NASBO * FY 2007, 2008, 2009 and 2010 are actual. FY 2011 is estimated and FY 2012 is proposed. ($ in billions) Revenue Remains Below Pre-Recession Levels

16 NASBO Balances as a Percentage of Expenditures * FY 2006, 2007, 2008, 2009, 2010 are actual, FY 2011 is estimated and FY 2012 is proposed. (percentages) Balance Levels are Below Historical Average for Most States

17 NASBO 17 Background on State Finance Trends

18 NASBO 18 Spending by Funding Source (Percentage) Source: NASBO 2009 State Expenditure Report

19 NASBO 19 Total State Expenditures Source: NASBO 2009 State Expenditure Report

20 NASBO 20 General Fund: Medicaid & Education Over 63% Source: NASBO 2009 State Expenditure Report

21 NASBO Percentage Change in Medicaid Spending and Enrollment 21 % Source: Kaiser Commission on Medicaid and the Uninsured Adopted

22 NASBO 22 What Can Be Done? Financial Management Ask performance questions Ask for outcome data Use performance information to justify changes to programs

23 NASBO 23 Outlook

24 NASBO Major Challenges to State Budgets Spending Demands and Some Revenue Growth  Dependent on Economic Growth Health Care Cost Pressures Wind Down of Recovery Funds (Planned For) Dealing with Long Term Liabilities Court Cases/Federal Government Mandates

25 NASBO 25 Source: New York Times, 6/12/11 Tough Decisions to Make…

26 NASBO 26 www.nasbo.org Scott Pattison (202) 624-8804 spattison@nasbo.org


Download ppt "NESTOA September 16, 2011 Scott Pattison Executive Director National Association of State Budget Officers 444 North Capitol Street, NW, Suite 642 Washington,"

Similar presentations


Ads by Google