Fiscal Focus Quarterly

              IN THIS ISSUE
Fiscal
Smarts
...PAGE 2
IN THIS ISSUE
IN THIS ISSUE
IN THIS ISSUE
Illinois’ budget problems are not unique. State governments are fac-ing
unprecedented fiscal problems. Budget shortfalls are widespread
and state officials are scrambling to minimize the damage. According
to an April 2002 survey conducted by the National Conference of
State Legislatures (NCSL), only 7 states claimed not to have faced a
budget shortfall in fiscal year 2002. Weak revenue growth was cited
as the major factor contributing to the shortfalls, but spending over-runs
also were evident. Thirty-three states said that expenditures
exceeded the amounts budgeted for fiscal year 2002.
According to the National Association of State Budget Officers
(NASBO), the combined budget gap for all of the states for fiscal year
2002 is between $40-50 billion. States have responded to close the
budget gaps using a variety of actions: 26 states used across-the-board
cuts, 22 used rainy day funds, 11 laid off employees, 10 reor-ganized
programs, 3 used early retirement plans, and 33 used a num-ber
of ‘other’ methods.
State Governments
Battle Fiscal Problems
COVER STORY continued, page 57
Focus On
Revenue
...PAGE 8
Focus On
Spending
...PAGE 9
Vital
Statistics
...PAGE 15
Comptroller Daniel W. Hynes
JULY 2002 ISSUE
✁
QUARTERLY