"For this fiscal year, which ends in June, it's actually pretty good," says Dr. Walden, a professor of agricultural and resource economics. "Actual state revenues are ahead of projections -- part of the reasons being that the forecasts that budget people made last year (were) very modest because they didn’t want to get in the situation of being behind.

"But the projections for the next two fiscal years are indicating a slowing in the rate of growth of revenues," he adds. "This is in line with a still growing but growing at a slower pace state economy.

"I think one of the big wildcards here is the real estate market. We really don't have a good handle on what the real estate marketing is going to do and how that is going to affect state revenues.

"So the budgeting decision at the state level right now ... is pretty good, but when the new fiscal year begins it's probably going to be, unfortunately, much tighter."