Deltek Sr. Analyst Chris Cotner reports.
This blog contains exerpts from the full Deltek GovWinIQ article, located here (subscribers only).
The National Association of State Budget Officers (NASBO) and the National Governor’s Association (NGA) released a report in November 2001 outlining the fiscal condition of the states. As highlighted by NASBO, state general funds (GF) budgetary conditions are actually improving in FY 2012, albeit slowly. NASBO projects growth to continue, with slowly improving economic conditions in FY 2012 and 2013. Deltek projects similar improvement in state all funds (AF) budgets, with slow growth in 2013 and improved growth looking forward to 2014 and 2015. Simply, expenditures, revenues, balances, and rainy day funds are all up and improving. This is good news for the GovCon community.
However, even with this good news, most states made changes and cuts to achieve balance. In this installment of the straight dope series, Deltek examines some of the measures states took to adjust their finances and get government business moving in the right direction again.
As discussed in previous Deltek articles, state expenditures are on the rise again, which is an excellent sign for the business community. Figure 1, below, provides a vivid graphic illustration of the turmoil caused by the recession and the more recent recovery. However, states made many cuts and adjustments to get back to this place of positive growth.
Examining expenditures for 2012, state priorities for cuts and growth become more apparent. In figure 2, below, the number of states making significant adjustments in expenditures, both positive and negative is fairly high across most verticals. This is likely due to states needing to make many budgetary adjustments in order to bring the books back in balance after the turbulent recession. Subscribers have access to more detailed analysis of state spending changes in 2012 in the full article, here.
For the complete blog, go here.