State budgets are getting healthier but spending remains tight, and some states are calling for cuts in programs such as transportation. A National Governors Association-National Association of State Budget Officers (NASBO) survey, released on June 2, reports 14 states are recommending a total of $212.8 million in 2012 general-fund transportation cuts. Six states made midyear 2011 transportation reductions totaling $357.2 million, including $262.4 million in California and $84.4 million in Texas.
The report doesn’t cover capital budgets, but capital spending on infrastructure is likely to be under pressure, says Scott Pattison, NASBO executive director.
States’ fiscal 2012 general-fund spending is expected to rise 2.6%, to $668.6 billion, but that still is below 2008’s $687.3 billion.