Budget Blog

On October 2-4, budget officers from 26 states, the Virgin Islands and District of Columbia gathered in Washington, DC for our 2019 Fall Meeting. Below are key takeaways from the meeting along with links to speaker presentations. Preparing for the Next Recession: A Reflection on the Federal Fiscal Policy Response During the Great Recession Moderated by Tracy Gordon, Senior Fellow, Urban-Brookings Tax Policy Center Stan Czerwinski , former Director, Strategic Issues, Government Accountability Office Tom Mullaney , State Budget Officer, Rhode Island Department of Administration – Budget Office Ray ... More

Forty-six states began fiscal 2020 on July 1 (New York began its fiscal year on April 1, Texas began on September 1, and Alabama and Michigan begin on October 1). Forty-seven states proposed new budgets for fiscal 2020 (30 states considered an annual budget, while 17 states debated a biennial budget covering both fiscal 2020 and fiscal 2021). Last year, 3 states enacted budgets covering both fiscal 2019 and fiscal 2020. Unlike last year, when only two states did not have a fully enacted budget on July 1, seven states this year did not have a fully completed budget at the beginning of their fiscal year (Massachusetts, ... More

In 2018, NASBO released the first edition of a new resource, Statewide Initiatives to Advance the Use of Data & Evidence for Decision-Making: A Working Inventory . This compilation was intended to catalog state government efforts to use data and evidence in decision-making through performance management systems, data analytics, evidence-based initiatives, process improvement strategies, and performance budgeting methods. States continue to make progress in this arena, harnessing administrative data, greater access to research clearinghouses, partnerships with universities and foundations, and other tools ... More

Following strong gains in April tax collections , most states ended fiscal 2019 with year-over-year revenue growth. Many states saw positive gains in personal income tax collections, attributing the increases to both the payroll withholding component, reflecting continued economic growth, and a second consecutive year of higher collections from non-wage income (capital gains, dividends, bonuses). Changes in taxpayer behavior following federal tax reform significantly altered the timing of estimated state personal income tax payments, with some states noting that those taxpayers no longer had incentive to pay in ... More

As of August 10, two states with a July 1 fiscal year start date have not yet completed a full-year budget for fiscal 2020. In both New Hampshire and North Carolina the governor vetoed the budget bill. Michigan's legislature has not yet finalized the budget but the state's fiscal year does not begin until October 1. Below is additional information on the states that have yet to enact a full-year budget for fiscal 2020: Michigan – The legislature has not finalized the budget yet. However, the state fiscal year does not begin until October 1. New Hampshire – The governor vetoed the budget on June 28. A continuing ... More

Updated June 4, 2019 States are reporting higher than expected income tax revenues in the month of April . The significantly higher April income tax revenues, for the most part, are making up for the substantially lower income tax revenues collected in December and January. Through November, year-to-date income tax revenue growth was 6.7 percent. Through January, year-to-date growth had declined to 0.6 percent. Following April’s strong collections, it now appears that year-to-date growth is returning to November levels. State Income Tax Revenue Growth in Fiscal Year 2018 and Early Fiscal Year 2019 Personal ... More

Overview Over the past several years, the number of states legalizing marijuana has quickly grown across the United States. According to the National Conference of State Legislatures (NCSL), a total of 34 states and the District of Columbia have established medical marijuana programs, while 10 states and the District of Columbia have legalized marijuana for recreational use. Some issues that states face when legalizing marijuana include determining the appropriate level of taxation, forecasting marijuana revenue, the budgetary impact, establishing a regulatory framework, and contending with banking issues ... More

The personal income tax is the single largest source of revenue to state governments, representing 46% of total state general fund revenue in fiscal 2018 according to NASBO’s State Expenditure Report . Forty-one states have a broad-based personal income tax. April is typically the month with the highest amount of personal income tax collections. Early indications are that many states experienced a positive “April surprise” this year, seeing strong growth in April income tax collections. The positive April surprise is likely due to several factors including continued growth in the economy, gains in non-withholding ... More