NCSL study says state finances not to recover anytime soon

Counties hoping for light at the end of the revenue tunnel will need to wait longer. According to a new report from NACo's "Big 7" partner - the National Conference of State Legislatures (NCSL), "Many state legislators were hoping to wake up from this current fiscal nightmare to see revenues recovering in fiscal year (FY) 2010. But according to a new report by the National Conference of State Legislatures (NCSL) released today, lawmakers may have a few more sleepless nights before this fiscal crisis is over."

The report indicates that, "Leading economists believe that the U.S. economy began rebounding sometime in the third quarter of 2009. But state finances are not expected to recover for at least two years. History shows that state budgets continue to struggle long after a national recession ends. This new report by NCSL is further proof of that fact.

“Even if the recession is over, state budgets are still in appalling condition and are going to be that way for quite a while," said Corina Eckl, fiscal director at the National Conference of State Legislatures. “For many states, revenue recovery is not even in the forecast."

And this is bad news for counties of course. While local revenues continue to drop, state aid reductions are sure to follow in many states for the next fiscal year.