fiscal conditions

fiscal conditions

Positive April Surprises to Help Many States Meet Revenue Targets

May 12, 2015

Early indications are that most states experienced a positive “April surprise” this year, in contrast to last year. April surprises often occur in states after taxpayers pay both their federal and state taxes. Sometimes the surprise can be a positive one as states experience higher than projected tax windfalls. Other times the surprise can be negative as was the case for most states last year. The primary reason for the slowdown in 2014 was related to the federal “fiscal cliff”.

Fiscal Survey of States, Fall 2014

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This report shows that state fiscal conditions are moderately improving in fiscal 2015 as the economic recovery enters its sixth year. Consistent annual growth in the economy, while not as robust as many would like, is leading most states back to budget growth. States have replenished some spending for areas cut back during the recession, such as K-12 education and higher education. In addition to bolstering state spending, economic growth has produced higher revenue collections.

Federal Funds Vital for States’ Transportation and Capital Projects

July 29, 2014

As discussed in NASBO’s Monday Washington Report, the U.S. Senate is preparing to vote on a short-term fix for the federal Highway Trust Fund (HTF). The full Senate is expected to vote on House-passed legislation that would transfer $10.8 billion into the HTF from the U.S. Treasury’s general fund, which is expected to provide sufficient funding for programs through May 31, 2015; the Senate is also expected to consider several amendments during debate.

Fiscal Survey of States, Spring 2014

State budgets are expected to continue their trend of moderate growth in fiscal 2015 according to governors’ spending proposals. Consistent year-over-year growth has helped states achieve relative budget stability, but progress remains slow for many states. With each passing year of slow improvement, more and more states are moving beyond recession induced declines and returning to spending and revenue growth. According to executive budgets, general fund spending is projected to increase by 2.9 percent in fiscal 2015.

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