The Legislature was within its right to take $50 million from a mortgage-settlement fund to help balance the state budget, a judge has ruled.

The Colorado State University Board of Governors voted unanimously Thursday to support president Tony Frank's plan to build a $250 million on-campus football stadium.

The measure on the Nov. 6 ballot would increase the sales tax a quarter-cent on the dollar for four years and hike income taxes on a sliding scale for seven years on those making more than $250,000 annually. It would raise billions of dollars a year for state programs including education and public safety and thwart nearly $6 billion in cuts to public schools and colleges in the current budget year.

For the second time in as many weeks, a state corrections agency has been busted for sidestepping the state budget law.

While states across the nation have had to lay off employees, cut programs and zero out their rainy day funds, West Virginia has not had to take such drastic action.

Missouri Gov. Jay Nixon made the finances of his office look better by shifting $1.7 million of staff, travel and office costs to other agencies over the past several years, according to an audit.

Connecticut ended fiscal year 2012 with a $143.6 million deficit, state Comptroller Kevin Lembo said in a statement, but the deficit had been eliminated using General Fund reserves from prior years.

A lawyer for Arizona's attorney general says the state is entitled under a multistate mortgage foreclosure settlement to use $50 million to help balance the state budget.

Texas lawmakers' 2011 budget tricks and some clouds in the financial forecast take away some of their options in 2013.

A day after only releasing partial news on state tax collections, Governor Christie put out a full revenue report for July 2012 that shows a mixed bag for the state economy.

Was the slow recovery of the U.S. economy from the trough of the Great Recession anticipated? 

Alternative views on the problem the United States is facing: financing retirement consumption as its population ages.

State finances are not transparent and often include hidden liabilities as well as rapidly growing responsibilities which are difficult to control.  While state revenues are gradually recovering from the drastic decline of the Great Recession, they are not growing sufficiently to keep pace with the spending required by Medicaid costs, pensions, and other responsibilities and obligations.  This has resulted in persistent and growing structural deficits in many states which threaten their fiscal sustainability.

Because many states do continue to rely on the gimmicks, SBS tracks what financial games the states are playing.  The gimmicks are many and varied.  This is an overview of many of the gimmicks that states have recently used.

State Budget Solutions' second annual state deficit report reveals aggregate state debt presently exceeds $4 trillion. While states themselves can rely on budget gimmicks to hide the extent of the deficit, SBS takes a straightforward approach to calculating total state debt. See where your state ranks.

This paper examines the fiscal health of the 50 U.S. states. As this paper shows, accounting for implicit pension liabilities provides a significantly more negative picture than does explicit debt information on its own.

Gov. Malloy has proposed dozens of tax increases across 25 categories of taxes. This is a conservative count; we aren't counting each separate expansion of the sales tax as a separate tax hike, though of course they are.

Both the decision to raid special funds and the revelation that several may have excess balances or be obsolete provokes one to ask, "Just how many special funds are there, and what is their total in excess balances?" This paper aims to create a starting point for answering that question and to provoke policymakers and taxpayers alike to support a complete audit and publication of all Hawaii State funds - not just special funds - for the purposes of transparency and accountability in government.

There is no government or private sector budget with items labeled "government waste," or "junket" or "fraud and abuse." When the Idaho Freedom Foundation began reviewing state and local government records in search of waste, elected officials and bureaucrats claimed that there is very little to discover--that with the recession and cost-cutting measures at all levels of government, there's no room for frills. As it turns out, that was hardly the case, and no one should be surprised.

This chart shows thatstates have closed $169 billion in budget gaps and that a $127 billion gape remains. This is, however, overstated.  It is important to get the total spending in each state. In some cases, the legislature may cut general fund spending but use money from other funds.  It is also important to consider borrowed money and federal funds, whjch can result in an increase in spending.  In many cases the "closed budget gaps" is the difference between what governors wanted to spend and the revenue forecast and is not the current budget versus the previous budget.  Total general fund spending and total all funds spending for last budget must be compared with the current budget and next years' budget.

State Budget Solutions recommends that state legislators take action in 2013 to resolve the serious state financial crises by changing their focus from inputs to outcomes by redesigning budgets from the ground up based on priorities and performance.

States should use the budget solutions of avoiding budget gimmicks and use any additional revenue to first eliminate all the dubious financial devices from budgets and to avoid state debt.

The Citizens' Budget includes legislative, constitutional, and policy recommendations to close the looming state budget gap - without raising taxes - and move Colorado towards sustainable government for good.

While several improvements have been made to bring Florida's tradition of "Government in the Sunshine" into the 21st Century, it seems appropriate that the year that marked the anniversary of the beginning of Florida's tradition of "government in the sunshine" also became the year in which
Florida took an important leap towards living up to its nickname of the "Sunshine State," particularly in the area of government finance.

To reestablish Illinois as an economic powerhouse, the Institute has proposed "Budget Solutions 2012," an alternative that does not rely on the state's recent tax hikes as a revenue source, does not include borrowing and has positive cash flow for fiscal year 2012 - all while funding core services the poor and disadvantaged rely upon.

Case study of New Jersey's five public pension plans and exploration of possible solutions, including shifting all newly hired employees to a defined contribution pension model based upon the plan already offered to New Jersey's university employees and continuing current reforms lowering pension replacement rates and, if possible, extended to current employees.

Many governors and state legislators are using accounting gimmicks and federal stimulus funds to temporarily balance their budgets. When federal funds run out in a year or two, these states will face a spending cliff, necessitating a significant downsizing of their state budgets.

In a period when financial markets and institutions have appeared near collapse, the accounting methods used by public employee pensions effectively ignore risk. These accounting methods, which are used by public pensions in Arizona and around the country, allow pension fund managers to assume that high returns can be earned through stocks and other investments without taking any market risk. As a result, the true market value of Arizona pension shortfalls that must be funded by taxpayers is understated by around half of what the pension funds have reported.

This paper establishes a basic framework that can be used to assess long-running fiscal practices in the states against a standard of fiscal prudence.