State finances, infrastructure investments, and pension systems were among the top priorities governors cited and signaled are challenges for the coming year, according to a report issued Thursday by the National Governors Association.
The seven-page report summarized governors’ annual state of the state addresses in 48 states and two territories.
Some of the themes were similar to those from the previous year — job creation, economic development and education — and were priorities for almost all governors, just as they were last year.
“Most governors reported balanced budgets, without reporting nearly as much of a need for large budget cuts or new revenues as they had in the past few years,” NGA said in the report.
Twenty-four governors reported a surplus or a build-up of their rainy day and reserve fund while thirteen governors pointed to their state’s good credit rating.
Still, governors were wary of potential federal budget reductions and forecasts for slowed economic growth for most of the country.
Twenty-one governors said that funding pensions and other long-term employee benefits were a challenge for their state, though some governors who mentioned pensions simply reviewed the benefit changes they implemented during the past couple of years.
Many also noted that states are operating with smaller work forces.
Since 2008 state and local governments have slashed more than 680,000 jobs, according to data from the Bureau of Labor Statistics.
In Kentucky, Gov. Steve Beshear discussed how the state reduced employee benefits for future hires, improved governance, and introduced solutions to address retiree health care.
Twenty-seven governors suggested in their speeches that infrastructure investments were necessary for economic development as a way to create jobs or assist businesses. Some governors said that infrastructure backlogs were becoming a public safety issue in their state, the NGA said.
“Most infrastructure projects mentioned in the speeches were transportation projects, including rail, but some governors also mentioned increasing access to broadband and capital building at schools,” NGA said in its report.
