
Sweet Springs, MO – March 4, 2010 – According to a new analysis of state budget conditions
released by MCH, Inc., nine states face increased budget pressure compared to the prior analysis in
May 2009. In the same time period, the budget outlook has improved for five states.
“The budget issues for states are the most severe since we began tracking them in 2002,” MCH
President John F. Hood said. “While the overall economic outlook turned the corner during the
second half of 2009, funding trends for state and local agencies lag behind the general economy.”
MCH has published four editions of its BudgetAware Bulletin report during the current
economic downturn. The company provides strategic marketing data to companies that sell goods and
services to institutions like hospitals, schools, churches, and city governments.
The company bases its analysis on a combination of budget statistics and published reports of
the steps taken to bring budgets in line. Hood said that last year’s economic stimulus package
continues to be important for state and local funding. “The funding was extremely helpful in many
states,” Hood said. “In 2010, institutions will actually spend more stimulus money, $107 billion
compared to $52 billion in 2009.”
The firm’s analysis groups states into five categories: Stable, Light, Moderate, Strong, and
Severe. The report notes that funding conditions are improving for some states. The firm upgraded
Vermont to Stable, Indiana to Light, Alabama and North Carolina to Moderate, and Ohio to Strong. “
In each of these states, we see evidence that budget conditions are less severe than in our prior
report,” Hood said.
Among states facing greater pressure, the firm shifted Missouri, Nebraska, and Texas to
Light. Colorado, Kansas, New Mexico and Virginia are now classified as Moderate. The report now
classifies Hawaii and Minnesota as facing Extreme Pressure, a category for states that are severely
slashing core services and have continuing budget gaps in the years ahead.
The BudgetAware Bulletin report is available for download from MCH’s website. The 57-page
document includes an overview of the economic conditions, marketing recommendations based on state
conditions, and a state-by-state report that shows remaining stimulus funds available.
MCH is America’s leading compiler of business-to-institution (B2i) databases and mailing
lists. The database features information on 1.1 million institutions and 8.2 million decision
makers. The largest institutional markets include governments, hospitals, medical practices,
schools, school districts, and churches. MCH also provides custom telephone research and data
processing services. MCH has offices in Sweet Springs and Kansas City, MO.