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Inflation-adjusted gross domestic product grew 1.9 percent in the United States during 2013, which is somewhat lower than long-term expectations for economic growth. Employment rose a relatively healthy 1.6 percent, but nearly 1.2 million fewer people have a job than before the recession. Most analysts expect better GDP growth during 2014 and anticipate employment will finally rise above the pre-recession peak sometime during the second half of 2014. Economic growth will improve because the short-term drag caused by sequestration and the debt ceiling debate has played through the economy, improvements in household balance sheets are allowing solid consumer spending increases, business investment is rising with better business equipment purchases and housing construction is healthier in many regions.

Chapter 2 of the 2014 Book of the States contains the following articles and tables:

Fiscal conditions for states continued to moderately improve in the 2013 fiscal year. Revenue collections exceeded projections for the vast majority of states and spending from both state funds and federal funds experienced stronger growth in comparison to the 2012 fiscal year. Additionally, the number of states making midyear budget cuts remained low and states have continued to replenish their rainy day funds and reserves. In the 2014 fiscal year, states are expected to have continued positive revenue and spending growth. Revenue and spending growth rates, however, are expected to be slower than last year. States are cautiously optimistic that fiscal conditions will continue to slowly improve in the 2015 fiscal year and beyond, although challenges remain.

Chapter 3 of the 2014 Book of the States contains the following articles and tables:

Relatively few state legislative seats were up in 2013 and the only major change was in functional control of the Virginia Senate, where the Democrats eked out control. Republicans, however, continue to dominate the legislative branch across the country by controlling 26 state legislatures, compared to only 19 held by Democrats. Only four states have divided legislative control, representing near historic lows of split control. 

State fiscal and economic indicators continue to slowly improve as the effects of the Great Recession continue to linger. For more than a year and a half, state tax collections have consistently grown and states have invested in rainy day funds. On a per capita basis, state general expenditures declined slightly in 2012 over 2011 levels and education and public welfare remained the largest components of state spending in 2012—65.5 percent.

Chapter 5 of the 2014 Book of the States contains the following articles and tables:

As the end of the Great Recession recedes into the past, governors maintain a “steady as she goes” approach to governing. Perhaps “cautiously expansive” best describes governors’ budget and policy agendas in 2014. The same five issues surfaced this year as last year as being part of most gubernatorial agendas: education, taxes, jobs, health care and public safety. State chief executives continue to finesse their plans for advancing their states as highly educated, economically vibrant, healthy and safe. More governors this year than last year consider state budget balance, rainy day funds and reserves, debt reduction and pensions. Many of these governors are calling for creating, funding and replenishing rainy day funds, applying surpluses to pay for infrastructure and undergirding pension trust funds. Some governors did venture into relatively new areas, given the times, by calling for serious investment in the arts as a roundabout way to influence state economic and cultural development.

The movement of women into state-level offices has slowed in recent years after several decades of gains. Efforts to actively recruit women for elected and appointed positions will be critical in determining what the future holds for women in state government.

Chapter 6 of the 2014 Book of the States contains the following articles and tables:

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