NASBO

Total balances are expected to decline in FY2025 and FY2026 as states spend down prior-year surpluses that built up in general fund ending balances. This aligns with routine budget practices, with many directing the funds to one-time investments. ➡️bit.ly/4lxR0iV

Most states plan to maintain or add to their rainy day funds in FY2025 and FY2026, though the median balance as a % of general fund spending ticked down in FY2025 as spending is on track to increase faster than reserves for that year. ➡️ bit.ly/4lxR0iV

Personal income taxes, the largest source of general fund revenue for most states, are expected to see faster growth in FY2025 and FY2026 compared to other major sources. ➡️ bit.ly/4lxR0iV

When governors recommended their budgets, most states were forecasting positive general fund revenue growth of less than 5% in FY2026, with annual growth of 3.0 percent in the aggregate. ➡️ bit.ly/4lxR0iV

On a nominal basis, forecasted general fund revenues in FY 2026 are up 44 percent compared to their levels in FY 2019, despite slower revenue growth in recent years. ➡️ bit.ly/4lxR0iV

Slow general fund revenue growth is expected to continue for a fourth consecutive year in FY2026, reflecting slower economic growth and the impacts of recent tax cuts at the state level. ➡️ bit.ly/4lxR0iV

General fund spending is projected to flatten in FY2026 proposed budgets, with a median annual increase of 0.0 percent and an aggregate increase of 0.8% compared to estimated spending levels for FY2025. ➡️ bit.ly/4lxR0iV

NASBO's Spring 2025 Fiscal Survey is out now! Get data and insights on: • State and territory fiscal conditions • General fund trends • Governors’ FY 2026 budget proposals 📊 Read the report: ➡️ bit.ly/4lxR0iV

We appreciate the chance to speak alongside leaders from @AECOM regarding the outlook for state fiscal conditions and infrastructure trends at NGA’s Infrastructure Coordinators Workshop! Thanks to @NatlGovs for hosting this important conversation.

𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝗴𝗼𝘃𝗲𝗿𝗻𝗼𝗿𝘀 𝗽𝗿𝗶𝗼𝗿𝗶𝘁𝗶𝘇𝗶𝗻𝗴 𝗶𝗻 𝟮𝟬𝟮𝟱? From housing and childcare to workforce and tax policy, NASBO’s latest report highlights key themes from State of the State addresses across 48 states and territories. ➡️bit.ly/4lyfsBl

Join NASBO on 𝗠𝗮𝘆 𝟮𝟬 for 𝘚𝘵𝘢𝘵𝘦 𝘉𝘶𝘥𝘨𝘦𝘵 𝘐𝘯𝘴𝘪𝘥𝘦𝘳 — 3 hours of CPE credit, expert insights, and federal funding updates. 💵 $99 early bird thru 4/30 ($139 after May 1) 📅 May 20 | 1–4 PM ET 🎓 3 CPE credits ➡️Register: bit.ly/3G5AC9S

Governors across the country are prioritizing childcare affordability and access in their state of the state addresses and budget proposals. Learn more about how states are addressing childcare challenges in NASBO's latest Budget Blog ➡️ bit.ly/3DqULGf

𝗡𝗲𝘄 𝗦𝘂𝗺𝗺𝗮𝗿𝗶𝗲𝘀 𝗔𝘃𝗮𝗶𝗹𝗮𝗯𝗹𝗲! 📝 Check out our website to learn more about proposed budget summaries for FY 2026! ➡️ bit.ly/3PriLLW

Explore top priorities from governors in 2025 with NASBO's State of the State Highlights. Read more about the posted states here ➡️ bit.ly/4hmW9bt

Join NASBO this 𝗙𝗿𝗶𝗱𝗮𝘆, 𝗙𝗲𝗯𝗿𝘂𝗮𝗿𝘆 𝟮𝟭𝘀𝘁 𝗮𝘁 𝟮:𝟬𝟬 𝗽𝗺 𝗘𝗧 for Let's Talk State Budgets! This discussion will provide insights into state budget conditions, trends, and emerging issues. Register today! ➡️ bit.ly/3EDabYw

Join NASBO for “Let’s Talk State Budgets” on February 21 at 2:00 PM ET for a discussion of state budget conditions, trends, and emerging issues. Register today! ➡️ bit.ly/3EDabYw

From housing to childcare, affordability is a top priority for governors in 2025. NASBO’s newest budget blog examines how these priorities are being addressed in State of the State speeches and budget recommendations. Read here ➡️ bit.ly/4jRRtMW

Check out our FY 2026 proposed budget summaries for Alaska, Arkansas, Colorado, Hawaii, Idaho, New Mexico, Utah, Wyoming, and Virginia! Now available. ➡️ bit.ly/3PriLLW

NASBO wishes you a happy and healthy New Year! 🎆In 2025, we are looking forward to celebrating our 80th anniversary; serving and connecting with our members; and following fiscal 2026 state budgets. #budgetnerds

For more information on state fiscal conditions and budget processes, visit our website at NASBO.org and add us on LinkedIn! ➡️ bit.ly/4gjvdcA

Fewer, more targeted tax decreases were adopted in fiscal 2025 compared to recent years, while some states adopted tax increases. ➡️ bit.ly/3VGQh4r

Enacted budgets for FY2025 call for $1.26 trillion in state general fund spending, reflecting essentially flat spending growth and less one-time spending compared to FY2024. ➡️ bit.ly/3VGQh4r