But it did say the state will end the year with a surplus. The group expects the state will still finish the year with $7.6 billion in unpaid obligations.
The report commends state leaders for passing cuts to Medicaid, and criticizes them for not resolving the pension crisis. The group says pensions now account for 20% of the state's operating budget. In fiscal year 2009, the state only contributed about 9% of its budget.