Governors Begin Releasing Fiscal 2018 Budget Proposals

By Brian Sigritz posted 12-21-2016 10:46

  

Governors have begun releasing budget proposals for fiscal 2018, which will begin on July 1, 2017 for 46 states (New York begins its fiscal year on April 1, Texas on September 1, and Alabama and Michigan on October 1). Over the coming months, 47 states will enact a new budget for fiscal 2018, while three states previously enacted budgets covering both fiscal 2017 and fiscal 2018. In addition, of the 47 states approving a new budget, 17 will authorize a two-year budget covering both fiscal 2018 and fiscal 2019. For most states, the legislature will begin considering the governor’s budget proposal in the winter, and will adopt a budget sometime in the spring (Table 1 of NASBO’s Budget Processes in the States provides greater detail on states’ budget calendars).

As NASBO’s Fall Fiscal Survey of States indicated, governors are releasing fiscal 2018 budget proposals during a period of weak revenue growth. Nearly half the states have reported revenues coming in below projections for fiscal 2017. Additionally, for most states, revenue forecasts to date for fiscal 2018 are assuming continued slow growth in tax collections.  As a result, budget proposals for fiscal 2018 have remained cautious with most governors calling for another year of slow spending growth. Some of the issues that governors are contending with as they release their budget proposals for the upcoming year include modest economic growth, weakening sales tax revenues, education investments, pensions and other liabilities, maintaining infrastructure, continued efforts to make government more efficient, and federal uncertainty in a number of areas.

Please click here to access governors’ budget proposals for fiscal 2018, and prior enacted budgets

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