One of the most revealing and important documents in the realm of state and local budgeting is the National Association of State Budget Officers (NASBO), Fiscal Survey of States which comes out twice a year. 

The spring edition was released on June 4, 2026, and according to NASBO, “provides a narrative analysis of the fiscal condition of the states and data summaries of state general fund revenues, expenditures, and balances. The spring edition details governors’ proposed budgets; the fall edition details enacted budgets.”

Following are the eight key findings of the survey:

• “General fund spending growth is essentially flat in recommended budgets for fiscal 2027, reflecting few one-time expenditures from surplus funds and limited recurring spending increases.”

• “Estimated data shows general fund spending for fiscal 2026 came in higher than originally budgeted, driven in part by supplemental appropriations and one-time investments.”

• “In recommended budgets for fiscal 2027, strategies such as targeted spending cuts, eliminating vacant positions, revenue increases and other measures were commonly used signaling a constrained budget environment.”

• “Modest growth in general fund revenue is projected to continue in fiscal 2026 for the fifth consecutive year, following the two fastest growing years on record in fiscal 2021 and fiscal 2022.”

• “General fund revenue collections for fiscal 2026 are on track to exceed original estimates in most states particularly driven by stronger-than expected personal income tax collections.”

• “Governors recommended a mix of tax increases and decreases in fiscal 2027, which collectively would have an estimated near-zero net impact on general fund revenue.”

• “Most states are on track to increase or maintain the size of their rainy day funds in fiscal 2026, as measured in nominal dollars and expect to do so again in fiscal 2027 according to recommended budgets.”

• “General fund ending balances are expected to resume their decline in fiscal 2026 and fiscal 2027—after plateauing in fiscal 2025 – but are still projected to remain elevated compared to historical levels.”

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