State Officials Relish Improved Finances, Discuss Teacher Pay

Seattle

State budgets are the healthiest they’ve been since 2000, partly because of improved tax revenues, but also because legislators are showing more discipline in targeting spending toward their biggest priorities, according to a survey released this month at the annual meeting of the National Conference of State Legislatures.

The 46 states that responded to the survey ended the 2005 fiscal year with an aggregate balance of $35.7 billion—which is 7 percent of their budgets. No state surveyed ended with a deficit, although Arkansas expected to end the fiscal year with a zero balance.

State revenues were 6.8 percent higher than in fiscal 2004, and rainy-day fund balances increased 14 percent to more than $20 billion compared with fiscal 2004. The states that had not passed budgets in time for the report were Alabama, Michigan,...