From the press release:
A recovering national economy is stabilizing state revenues in fiscal year (FY) 2011, but the end of federal stimulus funds coupled with rising program costs will mean sizeable gaps in some state budgets.
State lawmakers around the country will face a budget paradox when they convene their 2011 legislative sessions. On the one hand, an improving state revenue situation in the current budget year is helping to stabilize state budgets. On the other is a forecast for significant budget gaps in the next fiscal year brought about in part by disappearing federal stimulus funds and growing program costs.
According to a new report, “State Budget Update: November 2010,” by the National Conference of State Legislatures (NCSL), an increasing majority of state legislative fiscal directors are reporting that the revenue outlook for the remaining seven months of FY 2011 looks promising. At the same time, however, most states also are forecasting significant budget gaps in FY 2012.