State & Local Fiscal Facts 2015

Source: National Governors Association, National Conference of State Legislatures, The Council of State Governments, National Association of Counties, National League of Cities, The U.S. Conference of Mayors, International City/County Management Association, National Association of State Budget Officers, National Association of State Auditors Comptrollers and Treasurers, Government Finance Officers Association, National Association of State Retirement Administrators February 2015

State Finances
For states, 2014 brought a moderate improvement in fiscal conditions and the trend for 2015 is that improvements will continue. General fund spending and revenues are projected to increase for the fifth consecutive year based on state – enacted budgets. Since the end of the recession, states have transitioned to a sustainable period of fiscal rebuilding, but progress remains slow and fiscal challenges are likely to continue because of rising spending demands in areas such as healthcare and education and limited gains in revenue collections.
• Forty – three states enacted higher general fund spending in FY15 than in FY14.
• States have enacted minimal mid – year spending cuts over the last several years indicating that states’ fiscal situations have stabilized.
• States have replenished some spending for areas cut back during the recession, such as K – 12 and higher education.
• Forty – one states and the District of Columbia expect to meet or exceed their FY 2015 revenue projections.

City Finances
City fiscal conditions are improving as the recession recedes. A number of factors determine the revenue performance, spending levels and overall fiscal condition. Among the factors that negatively influence city conditions are a decrease in federal and state aid and an increase in infrastructure demands, cost of services and employee compensation. Positive factors include the health of the local economy and the value of the local tax base.
Related:
Introduction