Report Documents New Round of State Fiscal Lows

By Lonnie Harp

The health of state budgets continued to decline for the third straight year and year-end balances are expected to near rock bottom, according to a report issued last week by the National Governors' Association and the National Association of State Budget Officers.

Policymakers must begin to confront the possibility that the sluggish economic climate--and tight fiscal situation--may continue throughout most of the decade, the report warns.

The groups' semiannual survey found that this year produced a new round of financial...