WASHINGTON — State general fund spending is increasing, although it continues to lag behind historical averages and revenue growth remains small in some states, according to a report the National Association of State Budget Officers released Thursday.
State executive budgets reveal that general fund spending is projected to increase by about 3% in fiscal 2015, the report shows, below the decades-long average of 5.5%. Fiscal 2015 revenues are projected to grow by 3.2%, a rate the report characterizes as "not overly robust."
General fund spending is projected to reach $750.5 billion in fiscal 2015, up $21.4 billion over fiscal 2014. General fund tax revenues are estimated to reach $749.2 billion in fiscal 2015, a $23.5 billion over the projected amount collected the previous fiscal year.
"States are in much better financial shape than they were coming out of the recession," said NASBO executive director Scott Pattison. "Still, states are cautious, especially since revenues are growing slower than expected in some states."
George Naughton, NASBO president and chief finance officer for the state of Oregon, said his state is playing it conservatively in this environment.
"Like many states, we've achieved budget stability and aligned our spending with the slow growth in the economy, but we aren't taking on significant new budget obligations," he said.
The report is published twice annually by NASBO, and was first published in 1979.
