The National Association of State Budget Officers (NASBO) released a semi-annual report analyzing the fiscal condition of the states, including summary tables of general fund revenues, expenditures, and balances. This spring edition provides an overview of governors' budget proposals. Among the key takeaways for Fiscal 2022:
- Overall, general fund revenue is estimated to increase by 3.2 percent, though final totals are likely to be higher.
- General fund revenue collections for 49 states are exceeding their original budget forecasts.
- Rainy day funds continue to grow after increasing by 62% from fiscal 2021 through fiscal 2022.
- Governors proposed net tax cuts for fiscal 2023 that would reduce revenue by approximately $15 billion for all state funds.
- Medicaid spending growth is expected to slow as the enhanced federal matching rate ends with spending projected to increase only 0.8 percent in fiscal 2023. Medicaid spending in fiscal 2022 had grown 10.6 percent.