The Governors Speak - 2005

Based on the governors' addresses, the economies in the vast majority of states appear to be turning around, and the recovery seems to be spreading. Likewise, the budget picture in most states appears to be improving. In 2003, the words fiscal crisis were distributed throughout the governors' addresses. Last year, many leaders described improving economic conditions, but were still speaking in a deficit mode in terms of state budgets. This year, while many governors are still grappling with state budget deficits, state revenues appear to have picked up to the point where several governors are making modest use of the word surplus.

In light of these more brisk economic times, and having suffered through the difficult political, economic, and social choices of lean budget years, many governors used their state-of-the-state addresses to prompt their states to strike out in new and more ambitious directions. As Georgia Gov. Sonny Perdue said, "Having passed through the storm, it is time to take our bearings and chart our course anew." To be sure, many states continue to face structural budget deficits in the upcoming year. Even those governors with projected state surpluses face difficult budgetary decisions. As the speeches make clear, however, more governors this year are enduring the choices of moderate opportunity rather than outright fiscal crisis; they are describing opportunities for renewed energy and commitment in light of improved economic conditions.