Overview - Fall 2022
Enacted budgets for fiscal 2023 provide for general fund spending of $1.16 trillion, a 6.7 percent increase over fiscal 2022. This follows fiscal 2022, when states recorded spending growth of 18.3 percent, the highest annual increase in spending recorded in the Fiscal Survey of States since its inception in 1979. Adjusted for inflation, general fund spending in fiscal 2022 increased 9.6 percent.
Other key highlights from the report:
- General fund revenue grew 14.5 percent year-over-year to total $1.17 trillion in fiscal 2022, following a 16.6 percent increase in fiscal 2021.
- 49 states reported fiscal 2022 general fund revenue collections exceeded enacted budget forecasts, with collections in the aggregate exceeding original projections by 20.5 percent.
- Revenue projections in fiscal 2023 enacted budgets are 3.1 percent below preliminary actual collections for fiscal 2022, but more recent revenue data suggest that revenue will continue to grow in fiscal 2023, with 33 states reporting collections exceeding budget forecasts.
- States enacted net tax cuts in fiscal 2022 totaling $16.2 billion for all state funds and $15.5 billion for general funds (1.4 percent as a share of forecasted general fund revenue).
- Rainy day fund balances continued to grow in fiscal 2022 after increasing 58 percent in fiscal 2021, and the median balance as a share of general fund spending is projected to be 11.9 percent in fiscal 2023.
- Total balances have seen tremendous growth recently, roughly tripling in size over the past two years after revenues far exceeded enacted budget forecasts in fiscal 2021 and fiscal 2022. At the end of fiscal 2022, they totaled $343 billion.