Budget Blog

As expected, April tax collections fell sharply with many states experiencing year-over-year declines of at least 50 percent, as highlighted in the below state-by-state press articles. The precipitous drops were brought on by a combination of states shifting their tax deadlines to July 15, and the economic impact of the coronavirus. Tax Deadline Shifts On March 21, the U.S. Treasury Department and Internal Revenue Service (IRS) announced that the federal income tax filing deadline would be extended from April 15, 2020, to July 15, 2020. Following this federal action, 40 states also chose to extend their state ... More

Download PDF The COVID-19 pandemic is placing significant stress on state budgets while also drastically reducing revenue sources that fund critical services to citizens. This blog outlines where states get their money from, what they spend this money on and the decisions that must be made during an economic downturn when there is not enough revenue to cover expenses.   State Revenues: Where Does the Money Come From? States collect revenue from a variety of sources, mostly in the form of taxes and fees. States use these revenues to pay for critical services that people depend on, including schools, roads, ... More

Budget offices in 33 states are preparing their fiscal year 2021 governor’s budget recommendations for consideration during the upcoming 2020 state legislative sessions (the other 17 states already enacted their 2021 budgets through a biennial budget process). Three states with biennial budgets are also preparing their fiscal year 2022 budgets. One overriding constraint on those budgets is the amount of revenues available to cover the spending decisions. For state budgets, better revenue conditions have finally arrived over the past two fiscal years – after two previous fiscal years of muted growth in tax receipts. ... More

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