Money

Financial resources are yet another of the critical ingredients that turn policy into results that matter in the lives of a state’s population, from environmental protection to education, health and transportation. A state’s fiscal systems are especially important in navigating today’s uncertain economic climate. To gauge how well a state is functioning in the Money category, the Government Performance Project team evaluated the degree to which a state takes a long-term perspective on fiscal matters, the timeliness and transparency of the budget process, the balance between revenues and expenditures, and the effectiveness of a state’s contracting, purchasing, financial controls and reporting mechanisms.

Grades in the Money category in 2008 ranged between an A in Utah and a D+ in Rhode Island. The national average among the 50 states for the Money category was B-, and 11 states received that grade. Nineteen states earned grades above the national average (i.e., grades of B and above), and 20 states received grades below the national average (i.e., C+ and below).

Again, transparency in transactions and public access to state fiscal information have become two of the leading indicators of a state that is functioning well in this area. Several promising new practices in real-time tracking of statewide expenditures and budgeting decisions, as well as joint executive and legislative revenue forecasting approaches are highlighted in this year’s study.

50 State Money Summary 

More information available at www.GOVERNING.com