In the February 2016 issue of Capitol Ideas, NGA Executive Director and CEO Scott Pattison outlines financial challenges states face in 2016.
Some highlights from the article:
- Though states have experienced modest revenue growth averaging roughly 3 percent over the past six years, state budgets have not fully recovered to pre-recession levels when adjusted for inflation. As a result, states must continue to prioritize needs and make tough choices about where to put scarce resources.
- Many states took longer than normal to finish budgets in spring and summer 2015, and this is likely to happen again this year.
- The biggest fiscal challenge facing states in 2016 will be funding health care and Medicaid while maintaining sufficient funds for other parts of their budgets or for tax cuts they may wish to enact.
- To prepare for the next downturn, states will need to continue to increase rainy day funds and other reserves.
To read the full article, click here.
