US DATA: NGA-NASBO Fall 2011 Fiscal Survey of States says “While
the overall fiscal condition of states has improved from the depths of
the recession, states are facing a ‘big squeeze’ from both local and
federal governments. The combination of the effects of the economic
downturn, tepid economic growth and the expiration of Recovery Act and
other federal funds has severely impeded the growth of state resources.
Additionally, spending on Medicaid is expected to consume an increasing
share of state budgets and grow much more rapidly than state revenue
growth, resulting in slow or no growth in education, transportation or
public safety. Overall, state 2012 enacted budgets include nearly $667
billion in general fund expenditures, a 2.9 percent increase compared to
$648 billion in general fund spending in 2011. Despite the second year
with an increase, total enacted general fund spending in 2012 is still
$21 billion less than the pre-recession high of $687 billion in 2008.”