Index of State Economic Momentum

Continuum of State Fiscal Stress

After modest improvement in fiscal year (FY) 2010, state economies and budgets continued to strengthen in FY 2011. As a result, it now appears that states have begun the long, slow process of recovering from the recession that devastated state budgets in FYs 2008-2009. One big question looms: will the national recovery be sustained at a level that allows states to replace the loss of federal fiscal assistance in FY 2012 and beyond?

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