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Most States Have Fiscal Year 2025 Budgets in Place

July 1 marked the start of the new budget year in 46 states.

By Erica MacKellar  |  July 2, 2024

Governors in a few states had some fiscal homework over the weekend.

Yesterday marked the start of the new fiscal year in 46 states, which means states had to have their budgets finalized by midnight on Sunday. Heading into the weekend, 41 states had enacted fiscal year 2025 budgets. Sixteen of those states enacted a biennial budget during their 2023 legislative sessions.

Related: NCSL’s FY 2025 State Budget Status webpage.

Governors in Alaska, California, Missouri and New Jersey had the weekend to review budgets approved by state legislators.

  • Alaska Gov. Mike Dunleavy signed the FY 2025 budget into law on Friday evening after making some line-item vetoes.
  • California Gov. Gavin Newsom and state lawmakers agreed on a final budget after confronting a significant fiscal shortfall. The new plan was signed into law Saturday.
  • Missouri Gov. Mike Parson used his line-item veto to cut $1 billion from the budget approved by the Legislature.
  • New Jersey’s Legislature finalized a state budget late in the day Friday, and Gov. Phil Murphy added his signature just before midnight.

As of Monday morning, 46 states had enacted FY 2025 budgets. Three states—Massachusetts, Pennsylvania and South Carolina—are starting the fiscal year without a budget, though none of them expect significant disruptions.

  • Massachusetts is no stranger to late budgets and typically passes a stopgap bill that allows funding to continue while lawmakers hammer out the details. The current stopgap funds the government through July. Once the budget is passed, Gov. Maura Healey will have 10 days to review the spending plan.
  • Pennsylvania lawmakers lack a temporary spending plan while they work on the budget. But the state is obligated to continue some funding, and the delay is unlikely to pose a challenge in the short term.
  • Lawmakers in South Carolina approved a budget on Wednesday ahead of the deadline. Gov. Henry McMaster has until July 3 to exercise his line-item veto power.

New York marked the start of its April 1 fiscal year without a budget but passed one later that month. The Michigan Legislature voted on its FY 2025 budget last week and sent it to Gov. Gretchen Whitmer. The state’s fiscal year begins Oct. 1.

For more information, see NCSL’s FY 2025 State Budget Status webpage.

Erica MacKellar is a principal in NCSL’s Fiscal Affairs Program.

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