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With Revenues Soaring, States Are Spending More. But on What?
Governing: A year ago, state budget directors were pumping the breaks on spending amid uncertainty over the economy and how the federal tax overhaul would hit state finances. But after 12 months of revenue growth that has surpassed just about anyone’s expectations, states are planning on some of the biggest spending increases since before the Great Recession.
A total of 40 states beat their revenue projections in fiscal 2018, the highest number to do so since 2006, according to a survey released this week by the National Association of State Budget Officers (NASBO). As a result, states bumped up their total spending by 4.3 percent to $874.6 billion in fiscal 2019.
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