A new study out of think tank the Center on Budget and Policy Priorities says that, despite recent revenue growth and budget surpluses in some states, most states continue to feel the after-effects of a recession that hit in 2000.According to the center, the economic growth that the states are now experiencing follows several years of falling or steady revenues. During those years, the paper's authors say that states cut back on services, withdrew from reserve funds and enacted temporary revenues, among other one-time accounting methods used to narrow the budget gaps. The paper contends that, as a result, state fiscal conditions today are weaker than they were before the last recession.

Co-authored by Elizabeth McNichol, a senior fellow specializing in state fiscal issues at the center, and Iris Lav, deputy director of the center, the paper's analysis shows that state revenues would have to grow by more than 9 percent per year between now and 2008 in order to generate enough funds to restore the level of services that prevailed in fiscal year 2000.

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