Budget Blog

  • Early indications are most states saw revenues near forecasted levels in April (April represents the largest month for tax collections for income tax states due to the tax filing deadline). As expected, the majority of states have seen modest increases or small declines in their April tax collections compared to April 2023. Similarly, revenue gains through the first ten months of the fiscal year (July 2023 through April 2024) have been minimal. Fiscal 2024 will likely mark the second consecutive year of relatively flat growth in tax collections following unprecedented double-digit gains in both fiscal 2021 and fiscal ... More

  • Overview Through January, governors from 31 states and territories have delivered a State of the State address. In their speeches most governors reported the state of their state is strong, with several noting it is stronger than it ever has been. Governors also described the state of the state as ascending, full of opportunity, fairer, healthier, safer, more affordable, underestimated, resolute, and ready to rock. Governors attributed their state’s strength to economic growth, job gains, improved fiscal conditions, working together, seeking excellence, resilience and resolve, a high quality of life, chartering ... More

  • In a blog last month , NASBO analyzed data published by Treasury based on quarterly project and expenditure (P&E) reports submitted by Coronavirus State and Local Fiscal Recovery Fund (SLFRF) recipients. At that time, data were available through the period ending March 31, 2023. This week, Treasury released an updated reporting dashboard and dataset through June 30, 2023. The following analysis is based on this latest data, with a focus on project plans and expenditures by Treasury category, as well as estimated revenue loss, reported by states, territories, and the District of Columbia (DC) (hereafter ... More

  • The Coronavirus State and Local Fiscal Recovery Funds (SLFRF), authorized by the American Rescue Plan Act of 2021 (ARPA), allocated $195.3 billion for states and the District of Columbia and $4.5 billion for territories. Under the U.S. Treasury Department’s Compliance and Reporting Guidance , states, territories and the District of Columbia are required to submit annual Recovery Plan Performance Reports. This year’s reports were due to U.S. Treasury on July 31, 2023 and were to cover the period from July 1, 2022 through June 30, 2023. For the same deadline, states were required to submit their quarterly ... More

  • Most states ended fiscal 2023 with a budget surplus as tax collections once again came in above projections. Entering fiscal 2023, states assumed smaller revenue levels following double-digit growth in tax collections in both fiscal 2021 and fiscal 2022. While year-over-year revenue collections grew at record high levels of 16.6 percent in fiscal 2021 and 16.3 percent in fiscal 2022, states forecasted fiscal 2023 revenues would decline 3.1 percent in their originally enacted budgets. States forecasted less revenue growth in fiscal 2023 due to several factors, including the high baseline established in fiscal 2022; ... More

  • States Finalize Fiscal 2024 Budgets

    As of July 5th, 45 states have enacted a full-year budget for fiscal 2024. Overall, states remain in a strong fiscal position as they enter fiscal 2024. According to NASBO’s Spring 2023 Fiscal Survey of States , state general fund spending growth in fiscal 2024 is expected to slow following two consecutive years of sharp increases which were driven in part by an uptick in one-time expenditures. Similarly, revenue growth is expected to decline following double-digit percentage increases in both fiscal 2021 and fiscal 2022. While state spending and revenue growth are showing signs of returning to more normal ... More