Federal Issues

 

Information on federal legislation, mandates, programs, executive orders, and other actions that impact state finance. In fiscal year 2011, federal funds represented 34 percent of total state expenditures, although this percentage is likely to decline following the wind down of the funding provided through the Recovery Act. The possibility of future federal budget cuts combined with likely congressional changes to healthcare, K-12 education, tax policy, and other areas, has led to a significant level of uncertainty among state decision-makers.

Staff Contact: Kathryn Vesey White

NASBO Publications

  • State fiscal conditions are modestly improving in fiscal 2014 with spending and revenues projected to rise above fiscal 2013 levels. Signs of fiscal distress continue to subside, and most states expect revenue and spending growth in fiscal 2014. Tax collections outperformed projections in fiscal 2013, and revenues experienced steady gains in most states. Although revenues are expected to increase in fiscal 2014, states are not projecting a rise in tax collections comparable to the gains in fiscal 2013.
  • The latest edition of NASBO’s State Expenditure Report finds that for the first time in the history of the State Expenditure Report total state spending declined in fiscal 2012, due to the combination of state funds slowly increasing and federal funds rapidly declining. It is estimated that expenditures returned to more typical growth levels in fiscal 2013 as both state and federal funds moderately increased.
  • Based on information from budget officers, NASBO has summarized some of the major challenges that states are facing at this moment. The federal government shutdown has caused significant disruptions and states are now seeking to determine which programs they will fund and which will be stopped.