States Face Difficult Challenges for Financial Management -- Findings from the biannual report, The Fiscal Survey of States, released by the National Governors Association (NGA) and the National Association of State Budget Officers (NASBO), show fiscal year 2010 presented the most difficult challenge for states' financial management since the Great Depression.
 
Although the nation's economy shows signs of improvement, state fiscal conditions continue to deteriorate. To address falling revenues and meet balanced budget requirements, states have dramatically reduced spending from $687.3 billion in fiscal 2008 to $612.9 billion in fiscal 2010. The report indicates fiscal 2011will be equally challenging, in spite of modest revenue growth. Unfortunately, states will have to make additional spending cuts or increase taxes to close their budget gaps, actions that will slow the economic recovery.
 
A copy of the Fiscal Survey of States report is available on the National Governor's Association website.
 
Political Drama Continues in Tallahassee -- The oil spill is headed our way. Look for it to become one of the hottest election year topics in Florida. You can be sure that every person running for higher office will have something to say about what should or should not have been done by Governor Charlie Crist to prepare for the emergency. Governor Crist has the main stage, and he is using it. Hardly a day goes by when he is not in the news talking about the oil spill and emergency measure planned or in place. He recently asked for more money ($50 million followed by $100 million) from BP to protect Florida's coastal waters.
 
Last week, Bud Chiles, son of the late Lawton Chiles, jumped into the Governor's race as an independent. Bud Chiles has never held a political office, but the Chiles' name could create problems for other gubernatorial candidates.   His father's political career spanned four decades. Lawton Chiles, a much beloved politician who never lost an election, served as a Democrat in the Florida House of Representatives (1958-1966), the Florida State Senate (1966-1970), the United States Senate (1971-1989), and as the 41st Governor of Florida from 1991 until his death in office in the last month of his second term as governor. He was the first Democratic Governor in state history to have a Republican-controlled legislature.
 
Former GOP Chairman Jim Greer also made the news last week when he was arrested on six felony charges related to the misuse of Party funds. He was handpicked by Governor Crist for the post. The arrest could spell trouble for Crist and possibly others in the Republican inner circle. Greer's lawyer claims that Crist and former aide U.S. Senator George LeMieux held at least three meetings with Greer about a fundraising agreement that benefitted Greer financially.