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MANAGEMENT UPDATE.

WHAT'S THE STATE OF THE STATES

Every year the National Association of State Budget Officers (NASBO) performs a valuable service to anyone interested in state government: It collects and describes the State of the State addresses that governors deliver each year.


The most recent summary of the speeches, by Brian Sigritz, which followed the 2026 addresses through February 25th, includes governors from 43 states and territories.

As is nearly always the case, these speeches tend to emphasize the positive, and as Sigritz writes describe states as “strong, resilient, and well positioned for the future.”



But the speeches feature challenges as well. The most notable was affordability, about which Sigritz writes, “Examples of proposals addressing affordability included reducing or reforming property taxes, providing one-time rebates, and expanding or creating child and earned income tax credits. . . “


Many governors also expressed concern about housing and homelessness. Governors are tacking this significant issue by “accelerating housing production through zoning and permitting reform, reducing regulatory barriers, leveraging public land, expanding affordable and workforce housing programs, and supporting first-time homebuyers. Some proposed housing bonds or new housing acceleration funds. Many also highlighted expanded services for individuals experiencing homelessness and housing-first approaches integrated with healthcare and behavioral health supports.”


Childcare and early learning also drew attention, with proposals centered on “expanding access to childcare, stabilizing providers, increasing wages for childcare workers, supporting universal or expanded pre-kindergarten, and providing childcare tax credits or direct subsidies. Several governors framed childcare as both an affordability strategy and a workforce development initiative.”


Other areas highlighted by Sigrit, included elementary and secondary education, higher education, workforce and economic development; health and rural health; public safety; infrastructure and transportation; natural resources and water; fiscal management and government efficiency and tax reform.


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