Average Revenue Growth Was Estimated at a Modest 1.9 Percent
Denver—As state governments close their books on FY 2017, state budget conditions are stable overall. An average general fund revenue growth estimated at a modest 1.9 percent. This according to a report released by the National Conference of State Legislatures (NCSL). For FY 2018, states anticipate that trend to continue with average projected general fund revenue growth of 3.9 percent.
“A healthy budget is essential to a state’s well-being and future,” said William Pound, NCSL executive director. “This latest state budget actions report recognizes how states are dealing with stretched budgets as many state legislators head into their legislative sessions.”
The report, “State Budget Actions: FY 2018,” summarizes the results of a survey of legislative fiscal offices about their state’s fiscal conditions. The report highlights their responses.
The key findings include:
- At the close of FY 2017 average state revenue growth was estimated at a modest 1.9 percent.
- Twenty-nine states expect revenue growth between 1 and 5 percent in FY 2018. This trend of moderate growth has been seen over the past few years.
- 11 states anticipate revenue growth of 5 percent or greater for FY 2018.
- The situation in most states remains stable. However, many states describe slow revenue growth as a challenge, with revenues projected to decline in 5 states. States including Iowa and -Indiana have built up substantial reserves for precaution.
- Overall, states chart a course for modest growth, while increasing spending pressures and slow revenue growth cause some concern and keep state budgets tight.
The full report is for immediate release. Read it here.
NCSL is a bipartisan organization that serves the legislators and staffs of the states, commonwealths and territories. It provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues and is an effective and respected advocate for the interests of the states in the American federal system.