March 8, 2004

The Governors Speak: 2004 State-of-the-State Addresses

Compared to 2003, the majority of governors in their state-of-the-state addresses for 2004 were much more upbeat about current economic conditions and the state budgetary outlook. Last year, about 86% of governors described huge budget gaps that loomed, outlined dire service cutbacks that were needed, or otherwise referred to a severe budget crisis that their states were experiencing. In 2004, on the other hand, the vast majority of governors described a more optimistic economic climate, including modest job growth that had occurred over the past year. Governors did emphasize, however, that although economic conditions had improved somewhat, their state budget and economic outlook was still far from rosy. In fact, the majority of governors emphasized that their state was still facing spending cuts to eliminate budget gaps.