raymond scheppach director of the national governors' association. today we are releasing a were fiscal report, which we do twice a year, and we've been doing this report well over 30 years now and on fortunately i have to report these are some of the worst numbers we have ever seen. for example, for the first time ever actual spending for the state is calling to decline this fiscal year, 09, and fiscal year ten, two years in a row. the last time this occurred and the only other time states actually had an actual outright decline in expenditure was 1983 and that was a little below the line about .7%. but me give you some numbers. state spending is estimated to decline 2.2% this fiscal year 09 which i think everyone knows for most states in this at the end of this month, june 30th. in ten we are projecting state expenditures will have an actual outright to equine of 2.5% and again that's significant both because this is two years in a row the first time but also these numbers are much more significant in terms of decline than the only other decline wh

the executive director with the national association of state budget officers and with me is raymond scheppach executive director of the national governors association. we are releasing our fiscal report which we do twice per year and we have been doing this report for well over 30 years. unfortunately i have two report these are some of the worst numbers we have ever seen. for example, for the first time ever actual spending for the states will decline this fiscal year 2009, 2010, two years a narrow. the last time this occurred, the only other time states had the outright decline in expenditures was 1983. that was just a little below about o.7% and the give you some numbers. state spending estimated to decline 2. 2% this fiscal year 2009 which everybody knows and furrow states at the end of this month on june 30. 2010 we are projecting state expenditures will have the actual outright declined of 2. 5% that is very significant. growth because this is two years a narrow but also because the numbers are much more significant in terms of decline and the only other decline which was 1983. 30 state

raymond scheppach. >> i just want to do two things, number one, talk a little bit about the relationship to the recovery package to these particular numbers and then second just stress a few of what i would call takeaways our bottom-line numbers. in terms of recovery package it was a total 787 billion, and that about 246 billion actually came to states or through states in terms of entitlements to individuals. of that total 135 billion whizz relatively flexible for states and that came out of into categories, the first 87 billion in medicaid. not that the federal money was flexible but allowed states to take the previous month to do and use that to plug holes in other places. the second piece was the so-called states civilization which was 48 million which went to education and because education totals about 30 percent of the average state budget was a lot of flexibility in there as wow. the remaining 111 billion was very specific in terms of categories to essentially a move that money around in a chorus provided the flexibility because economists often said the budget requirements state