What does it mean when a state has a budget gap? With state and territory fiscal conditions tightening, it is important to remember the various ways the term may be used and what it does and doesn’t mean. This explainer addresses several common questions including: What is the...
Disasters pose many challenges for states including the immediate response and long-term recovery. Disaster-related tax extensions provide relief for impacted taxpayers, but may present additional hurdles for revenue forecasters and cash-strapped states. To be resilient in the face of increasing...
Newly released end-of-year revenue totals indicate states largely saw a third consecutive year of slow growth in tax collections in fiscal 2025. Despite modest gains in revenue collections, most states ended the year above both their original and revised revenue forecasts. Comparing actual...
Update: As of July 4, four states have yet to enact a full-year budget for fiscal 2026 (MI, NC, OR, and PA). As of July 1, 44 states have enacted a full-year budget for fiscal 2026, while in several states the governor is currently reviewing the budget bill(s). This is in line with last...
Early indications are most states and territories continued to see slow revenue growth through April, the tenth month of fiscal 2025 for most states (46 states will end their fiscal year on June 30th) and the largest month for tax collections for income tax states due to the tax filing deadline....
As states work to finalize their budgets for fiscal 2026, many have published revised revenue forecasts, with most having revised estimates downward. A number of revenue forecasts discussed heightened economic uncertainty partly brought upon by changes at the federal level, while stating a...
In their State of the State addresses and budget proposals, governors have recommended a wide range of tax policy changes aimed both at providing tax relief and generating additional revenue through targeted increases. These revenue actions have included further reducing personal income taxes;...
The COVID-19 pandemic ushered in an atypical period for state and territory budgets marked by record-breaking revenue growth, unprecedented levels of surplus funds, and a sharp uptick in one-time expenditures. Recently, state fiscal conditions began to “normalize” as revenue growth slowed,...
Through February, 44 governors from states and territories have delivered a State of the State speech, while 49 have proposed a new budget for fiscal 2026. NASBO is continuing to publish state-by-state summaries of both State of the State addresses and budget proposals . In their speeches and...
Through January, 33 governors have delivered a State of the State speech, while 32 have proposed a new budget for fiscal 2026. NASBO has b een publishing state-by-state summaries of both State of the State addresses and budget proposals . In both their speeches and budget r ecommendations,...