Budget Blog

  • Most states saw stronger revenue growth in fiscal 2018 led by unusually high income tax payments from non-withholding income sources along with continued growth in the national economy. Specifically, states saw a significant uptick in their personal income tax collections in the last eight months. Information from NASBO’s Spring Fiscal Survey of States shows that 39 states were seeing fiscal 2018 revenues above projections at the time of data collection, with that figure expected to rise when updated data is collected in the fall. As a result of revenues coming in above forecast, many states ended fiscal 2018 ... More

  • The personal income tax is the single largest source of revenue to state governments, representing over 45% of total state general fund revenue in fiscal 2017 according to NASBO’s State Expenditure Report . Forty-one states have a broad-based personal income tax while the other nine states do not. April is typically the month with the highest amount of personal income tax collections. December estimated payments surged – Would April returns give them back? Recent national reports have highlighted the unique surge in state personal income tax revenues this past December. The Rockefeller Institute reported ... More

  • As of July 26th, all states have enacted a new or revised budget for fiscal 2019. 46 states began fiscal 2019 on July 1 (New York began on April 1, while Texas begins on September 1 and Alabama and Michigan on October 1). Last year, 17 states enacted budgets covering both fiscal 2018 and fiscal 2019. For the most current information on states’ budgets, please visit NASBO’s state-by-state listing of proposed and enacted budgets . Additionally, for summaries of governors' budget proposals for fiscal 2019 please click here . More

  • Federal Spending Bill Includes Increased Funding for Many Governors’ Priorities On March 23, President Trump signed into law the Consolidated Appropriations Act of 2018 ( P.L. 115-141 ). The $1.3 trillion bill increases spending by $80 billion for defense and $63 billion for non-defense discretionary programs. Many programs that received increased funding under the new federal spending bill, or omnibus, are similar to ones that governors have focused on this year in their State of the State speeches and fiscal 2019 budget proposals . Governors have called for more state spending and proposed new initiatives ... More

  • Recently, NASBO released state-by-state summaries of governors’ budget proposals for fiscal 2019, which reveal much information about state fiscal conditions, spending trends, and gubernatorial priorities. Reviewing executive budget recommendations this session can also provide valuable insights into how states are increasing their use of performance information, evidence and data analytics in funding, management and policy decisions. Governors’ budget proposals this session called for investments in evidence-based programs and evaluation, as well as performance-based budgeting and funding initiatives. Executive ... More