The Pew Center on the States recently released a study entitled “Beyond California: States in Fiscal Peril”. You can find a copy here: http://www.pewcenteronthestates.org/report_detail.aspx?id=56044.
The conclusions of the report are less interesting to us than some of the data:
- Only five states (Wyoming, Alabama, Montana, Iowa, and Nevada) did not see a drop in revenue from first quarter 2008 to first quarter 2009.
- All states except Montana and North Dakota face a budget gap for FY 2010.
- All states have seen an increase in unemployment.
The obvious conclusion we draw from this: States have less money and will, with higher unemployment, face more demand for their services. The stimulus bill only goes so far to patch these holes. Increased operational, organizational and information systems effectiveness and efficiency are necessary to manage these budget gaps without further cuts to staff and service levels.