Budget Blog

What are the key characteristics of state budgeting and how do they contrast with federal budget practices? How do the fiscal roles of federal, state, and local governments vary and interact in our federalism system, and what are the implications for budget processes? Why is it important for the federal government to understand how state governments manage their finances and what can they learn from states? These questions and others are addressed in a recently released paper, Fiscal Contrast: An Analysis of State and Federal Fiscal Processes , a joint project of the Kem C. Gardner Policy Institute and NASBO published ... More

Despite minimal growth in tax collections in fiscal 2024, most states ended the year near their revenue forecast based on newly released end-of-year revenue totals. Comparing actual collections to forecasts is a better indicator of state revenue performance than year-over-year growth figures which, in many states, have been considerably impacted by recently enacted tax cuts. Early indications are that the majority of states closed fiscal 2024 with revenues above original forecasts, with many also seeing revenues come in above revised forecasts. Most states that saw revenues come in lower than revised forecasts were ... More

As of July 29, all 50 states have enacted a full-year budget for fiscal 2025. State fiscal conditions are continuing to return to a more normal budget environment in which new money is limited and revenue collections more closely align with expectations. According to NASBO’s Spring 2024 Fiscal Survey of States , state general fund spending in fiscal 2025 is expected to slow following three consecutive years of robust increases, which were driven in part by sizable one-time expenditures of surplus funds. States are projecting modest revenue gains in fiscal 2025 following two consecutive years of essentially ... More

Early indications are most states saw revenues near forecasted levels in April (April represents the largest month for tax collections for income tax states due to the tax filing deadline). As expected, the majority of states have seen modest increases or small declines in their April tax collections compared to April 2023. Similarly, revenue gains through the first ten months of the fiscal year (July 2023 through April 2024) have been minimal. Fiscal 2024 will likely mark the second consecutive year of relatively flat growth in tax collections following unprecedented double-digit gains in both fiscal 2021 and fiscal ... More

Overview Through January, governors from 31 states and territories have delivered a State of the State address. In their speeches most governors reported the state of their state is strong, with several noting it is stronger than it ever has been. Governors also described the state of the state as ascending, full of opportunity, fairer, healthier, safer, more affordable, underestimated, resolute, and ready to rock. Governors attributed their state’s strength to economic growth, job gains, improved fiscal conditions, working together, seeking excellence, resilience and resolve, a high quality of life, chartering ... More