National Conference of State Legislatures' Mandate Monitor: Mandates on the Move

4/30/2004

From: Gene Rose, 303-364-7700, Bill Wyatt, 202-624-8667, or Nicole Moore, 303-364-7700, all of the National Conference of State Legislatures

WASHINGTON, April 30 -- Despite a fourth consecutive year of projected state budget gaps, Congress continues to add to the problem, according to the latest issue of the National Conference of State Legislatures' Mandate Monitor.

Washington lawmakers have enacted or are considering nearly 50 pieces of legislation during the 108th Congress that would leave states holding the bag. Medicare prescription drugs, special education, homeland security, enforcement of federal immigration laws will all compound the states' budget woes.

Over the past four fiscal years, states have been forced to deplete reserve accounts, reduce or eliminate programs and increase fees and taxes in order to close a cumulative budget gap of more than $200 billion. Despite an improving economy, a recent NCSL report noted states still must close a $720 million collective budget gap for fiscal year 2004 and a $36 billion gap in fiscal year 2005.

Previously enacted federally-mandated cost shifts to states already account for at least $33 billion in fiscal year 2005.

"Unfunded federal mandates are a growing concern to state legislators," said Pennsylvania Rep. David Steil, chair of the NCSL' Budgets and Revenue Committee. "As Washington struggles to address its own budget problems, their answer seems to be to pass the buck. Unfortunately, they're trying to get water from a stone -- states literally have few resources left. The policy of pushing federal program costs to the states is irreconcilable with the partnership we share."

Mandate Monitor is a periodic publication of the National Conference of State Legislatures' Budget and Revenues Committee. It is intended to call attention to proposals, both legislative and regulatory, that would force states to pay for the implementation or administration of federally-enacted programs.

NCSL is the bipartisan organization that serves the legislators and staffs of the states, commonwealths and territories. It provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues and is an effective and respected advocate for the interests of the states in the American federal system.