Economy

State budgets returning to normal

States are moving out of an extraordinary period that left them holding billions of dollars in extra cash.
California Gov. Gavin Newsom discusses his proposed state budget for the 2024-2025 fiscal year, during a news conference in Sacramento, Calif., Wednesday, Jan. 10, 2024. (AP Photo/Rich Pedroncelli)

As state budgets tighten, the typical governor’s budget proposed spending only 1.1% more to fund state government in Fiscal Year 2025, the National Association of State Budget Officers’s latest survey of state budget officials found.

States are returning to a budget environment in which new money is limited, tax collections are performing close to revenue forecasts, and rainy-day funds are on track for modest growth, said Kathryn White, director of budget process studies at NASBO.

Stay informed
Subscribe to keep reading.

Sign up today to get the latest state new at your fingertips and in your inbox.