WASHINGTON – After watching states endure quarter after quarterof budget and fiscal crisis, the National Conference of StateLegislatures has some good news: the end may be in sight. Accordingto the NCSL, state fiscal officers are predicting that revenueswill rebound in fiscal year 2004, and general fund ending balancesare expected to rise slightly from FY 2003 levels. What's more, nostate is predicting a deficit at the end of FY 2003, said the NCSL.The organization said during the past three years, states have hadto close a cumulative $200 billion budget gap. States that balancedtheir budgets during the fiscal crisis did so mostly withoutrelying heavily on broad tax hikes. With 42 states reporting theirinformation, the 2003 net increase in taxes so far is 1.3% of 2002tax collections. Although the NCSL pointed out that the numbermight change as more states balance their budgets, the organizationnoted that this is only the second time in nine years states had toincrease their taxes. From 1995 to 2001, states lowered taxes everyyear, as much as 2%. Instead of resorting to raising taxes, thestates turned first to their reserves, specific fee increases, andcost-cutting measures. In addition to fee and tax increases, tobalance budgets: * 31 states cut spending. Fourteen of these statesimposed across-the-board cuts ranging from 1.5% to 15%. Inaddition, several states also imposed target cuts to programs suchas corrections, Medicaid, and higher education. * 29 states tappeda variety of state funds. * 23 states reduced their stateworkforces or took other actions affecting state employees. * 13states tapped rainy-day funds. * 11 states delayed capital projectsor shifted them from pay-as-you go products to debt. * 6 statesexpanded gaming. -

[email protected]