HOUSE OF REPRESENTATIVES

THE TWENTY-SECOND LEGISLATURE

REGULAR SESSION OF 2003

A G E N D A

Ms. Corina Eckl

Fiscal Program Director

National Conference of State Legislatures (NCSL)

State fiscal conditions continue to deteriorate. A November survey conducted by NCSL revealed that more than half the states are facing budget gaps in fiscal year 2003. Anemic revenue growth remains a problem, with two-thirds of states reporting that revenues are failing to meet projected levels. "State legislators face a common problem around the country. Spending needs are outpacing projected budget levels, particularly in the area of Medicaid and health care costs," said NCSL Executive Director Bill Pound. "2003 certainly will be a year of tough policy decisions."

The outlook for the remainder of the fiscal year is bleak, with 38 states concerned or pessimistic about revenue performance. Only 10 states report a stable or optimistic outlook – Florida, Hawaii, New Mexico, North Dakota, Rhode Island, Tennessee, Utah, Washington, West Virginia, and Wyoming. To deal with budget gaps and revenue shortfalls, states may choose from a variety of cost containment measures – including tapping reserve funds, cutting program, and implementing short or long-term tax increases. Many states broke a trend of tax cuts by raising taxes by $9.1 billion in the aggregate. Eighteen states raised taxes by more than 1%, while Hawaii was the only state to cut taxes by more than 1%.

Ms. Eckl, the Fiscal Program Director for NCSL, will provide an overview of the fiscal conditions of the 50 states.

If you require special assistance or auxiliary aids or services to participate in the public briefing process (i.e., sign language interpreter, wheelchair accessibility, or parking designated for the disabled) please contact the committee clerk 24 hours prior to the hearing so arrangements can be made.

FOR FURTHER INFORMATION, PLEASE CALL THE COMMITTEE CLERK AT 586-6200.