
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, October 13, 1994                   TAG: 9411180009
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: Associated Press
DATELINE: NEW YORK                                LENGTH: Medium

STATES' FISCAL HEALTH IS BEST IN A DECADE

Riding the surging American economy, U.S. states are enjoying their best fiscal health in years, according to a study released Wednesday.

Forty-three of the 50 states will have higher-than-expected tax revenues in their current fiscal years, said the Conference Board, a not-for-profit research and business membership organization.

It's the best period for state governments since the mid-1980s, the private business research organization said.

``The economy's grown more than most state governments had expected, even in the weak regions, so you're seeing the revenues are above targets,'' said Jason Bram, a board economist.

States are expected to cut fiscal 1994 taxes as a result - by about $1.8 billion, the board estimated. But the tax savings won't have much impact on the $6 trillion national economy, Bram said.

``The only problem is it amounts to a relatively small amount of money,'' Bram said. ``I think about $2 billion, given the size of the U.S. economy, is not all that significant.''

The robust economies of the South and the Rocky Mountain region are leading the recovery, the board reported.

But despite the improved revenue picture, most states are holding the line on spending increases, the study said.

The report cited the Middle Atlantic states, the South Atlantic, the East South Central region and the West South Central area for moderate per capita spending growth that ranged from 3.8 percent to 0.1 percent.

But not all states are showing such restraint, the report said.

In the East North Central and West North Central regions, per capita spending is rising by nearly 5 percent, only slightly less rapidly than in New England.

And all three regions have total government spending rising faster than personal income, the report said.

The board's report was based on material from public sources, including the National Association of State Budget Officers, the National Conference of State Legislatures and the Center for Study of States, Bram said.

by CNB