Stateline Midwest ~ June 2012    

Interview with NASBO director Scott Pattison on state budget conditions »

The signs of improving fiscal conditions were apparent in most of the Midwestern states where new annual budgets were adopted this year.

State budgets are getting better in 2012, but they’re not good yet.  “States are seeing an uptick in their revenues, but they’re still struggling to get back to prerecession levels,” said Jennifer Burnett, The Council of State Governments’ program manager for research services and special projects. “The 2012-13 budget cycle is going to be somewhat similar to last year. It’s going to be all about closing the gaps, trying to find the money to preserve funding for education and the growing cost of social services like Medicaid and unemployment.”

Puerto Rico

To see more state budget news and information, visit State Budgets 2012. 

State budgets have been hit hard and state leaders have faced tough choices about spending and the future of key programs. But while states have been on the downward spiral and tightened their belts, now they are facing a new problem - too much money.

The U.S. economy is at a turning point, economist Zachary Karabell says, and states must respond to the expected changes. One only needs to look at the recovery following the Great Recession that many say ended in late 2009, and compare it to previous recessions over the past 60 years, he told an audience during The Council of State Governments’ Growth and Prosperity Virtual Summit.

As the president of River Twice Research, where he analyzes economic and political trends, Zachary Karabell challenges common assumptions ranging from global economics to environmental sustainability. With a prolific, award-winning writing career, an illustrious background on Wall Street and a doctorate from Harvard, Karabell brings a unique perspective to the discussion of globalization, the domestic and world economy, the greening of business and the shape of things to come.

During the current fiscal crisis, most states in the Midwest have chosen not to enact broad-based tax increases — a trend likely to continue as new annual and biennial budgets are finalized.