To: GROUND ZERO™ who wrote (499782 ) 11/28/2003 2:34:47 PM From: Hope Praytochange Respond to of 769667 Study Finds Improvement in Finances for States By THE ASSOCIATED PRESS y The Associated Press State government finances are improving, with fewer budget shortfalls, more control over spending and an increase in revenue growth for the first time in years, a new survey has found. Still, the upswing is not strong enough to undo instantly the last three years of financial problems, the worst states have faced since World War II, according to the National Conference of State Legislatures. The latest survey by the conference, a national bipartisan group, found that 10 states had reported budget shortfalls this fiscal year, a combined $2.8 billion. A year ago, 31 states had reported a shortfall that totaled $17.5 billion. Most states begin their fiscal year on July 1. The report said 34 states were on target to meet or beat their revenue estimates for the first quarter of the fiscal year. More than half the states said they were on target on the spending side of the budget, but 22 were spending more than they had budgeted. Last year, 29 states were over budget. "It's too early to break out the sunglasses, but the fiscal storm we've endured may be breaking up," said Martin R. Stephens, a Republican who is speaker of the Utah House of Representatives and the president of the conference of legislatures. A separate report found that state revenue from July through September grew 4.5 percent, the first overall growth after two years of declines, according to the Rockefeller Institute of Government in Albany. Tax increases accounted for much of the growth, said Nick Jenny, the author of the Rockefeller Institute report. Accounting for legislative changes and inflation, states over all saw only 0.6 percent growth. States approved $20 billion in new or higher taxes in the last two years. The authors took pains to warn that the positive steps could easily turn for the worse if the economy does not keep improving.