NASBO Releases Latest Fiscal Survey of the States
Section: Around the Nation




The National Association of State Budget Officers has released a new report on the general view of state government fiscal health. NASBO found that most state budgets continue to grow at a moderate pace after several years of slow recovery following the Great Recession. However, the progress has been uneven across states, and long-term spending pressures remain in areas such as health care, education, pensions and infrastructure.
 
NASBO also found that most states saw revenue growth accelerate in fiscal 2015, partially due to the strong stock market performance in calendar year 2014, with total general fund revenues having increased 4.9 percent. Thirty-two states estimated positive general fund revenue growth of less than five percent, while 10 states estimated growth greater than five percent. Of note is the fact that states have made significant progress rebuilding their reserves. In fiscal 2015, total balances reached an all-time high in actual dollars, resulting in part from larger-than-anticipated ending balances as revenue collections came in above budget projections in most states. NASBO concluded that state fiscal conditions have significantly improved and largely stabilized since the tough years during and immediately following the Great Recession. In fiscal 2016, for the first time, general fund spending and revenue levels in the aggregate are estimated to have finally surpassed their pre-recession peaks, after adjusting for inflation.
 
Click to view the full report.