The condition of many states governments’ finances is deteriorating, in some cases considerably, according to a report released this morning by the National Conference of State Legislatures (NCSL).

The majority of the states, 33, reported a “concerned” fiscal outlook in the NCSL’s April 2008 State Budget Update. Based on information collected from legislative fiscal directors in April, the report covers the revenue and expenditure situation for the first three quarters of fiscal 2008 for most states. Iowa was among 10 states reporting a “stable” outlook. Fiscal directors in three energy-producing states — Alaska, North Dakota and Wyoming — said their revenue outlook was “optimistic,” and Arizona, Delaware, New York and Washington reported a “pessimistic” outlook.

Because most states’ fiscal 2008 budgets were drafted based on revenue forecasts that are not materializing as expected, budget gaps have grown. The number of states reporting shortfalls rose to 16 in April, up from seven in November 2007.

Iowa’s Revenue Estimating Conference, which last met on April 4, projected fiscal 2009 net general fund receipts of $6.189 billion, a 2.1 percent increase from the fiscal 2008 estimate. It revised its estimates upward from the previous quarter in all major revenue categories, with the exception of the cigarette tax. The only shortfall reported was a $7.5 million gap in Medicaid spending.

“Iowa is not yet experiencing the problems that are beginning to affect many other parts of the nation,” according to a state-by-state summary in the report from fiscal directors. “High corn and soybean prices mean farmers are doing well and boosting the economy. It is likely that the economic downturn will eventually catch