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, New Hampshire, North Carolina, Ohio, Oregon, Rhode Island, and Wisconsin). However, the reasons for the late budgets were not due to weak fiscal conditions, but instead centered on various policy debates.
In fact, fiscal conditions improved for most states between the time when the governor proposed the budget and when the legislature finalized the budget. Due to strong revenue performance in the spring of 2019, states were able to finalize budgets for fiscal 2020 that included increased spending for priority programs, one-time spending in areas such as infrastructure, and more dollars directed to rainy day funds. While fiscal 2020 is likely to mark the tenth straight year of general fund spending and revenue increases, enacted budgets also included a number of measures to prepare for a future economic slowdown and ensure structural balance and long-term sustainability.
of fiscal 2020 proposed and enacted budgets and access links for further information.