State Expenditure Growth Slowing

Publication Date: July 2007

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Elizabeth C. McNichol; Nicholas Johnson; Sarah Farkas

Research Area: Health

Keywords: State budgets; Economic projections; Fiscal future

Type: Report

Abstract:

State expenditure growth is projected to slow significantly for fiscal year 2008, which is the 12-month period that began July 1, 2007 in most states.  During May, June, and early July, the Center on Budget and Policy Priorities conducted a phone and email survey of state legislative and executive budget officials to learn states’ actual General Fund spending for fiscal year 2006, their best estimate of fiscal year 2007 spending, and the fiscal year 2008 spending included in their recently enacted budget. The preliminary results of this survey show that in fiscal year 2008, General Fund spending will grow about 5.3 percent — well below the rates of growth in fiscal years 2006 and 2007.