Depressing State of Affairs

The June 2, 2008 edition of Newsweek updates the deepening public sector revenue recession and provides a useful point of comparison. Citing revised data from the Center on Budget and Policy Priorities, the magazine tallies $42 Billion deficit across 29 states for fiscal years 2008 and 2009 (projected). Compare that with the actual numbers from the bone crushing revenue recession that began in FY 2001 and crested in FY 2004. The big number, attributed to the National Association of State Budget Officers, totaled $84 Billion. NASBO's Scott Pattison worries "We haven't seen the worst yet," suggesting the current circumstance could come to rival the fiscal hardships at the beginning of the decade.  During the earlier troubles, there was a compelling argument about the use of digital technologies to permanently change the cost structure of service delivery because the fiscal problems are structural and merit a structural response.  It appears we have a second chance to get it right.