State budgets

Legislation for a local government revenue sharing trust fund in Michigan has stalled in the state Senate. On Tuesday, supportive officials gathered in Lansing.

AI champ Nvidia and three other tech companies are driving a stock market surge resulting in California revenues coming out $7 billion above expectations set when the 2024-25 budget was approved in July.

States, cities, trade groups look toward uncertain future

Public pension benefit improvements could put credit pressure on states that enact them, the rating agency said this week.

A little-noticed program in Ohio's capital budget is drawing attention after a nonprofit advocacy group called its grants to religious groups unconstitutional.

Votes on Amendment A, which would have allowed excess income tax revenue earmarked for public education to flow into the state budget, will not be counted.

The California State School Board Association has sued over an education funding work-around included as a trailer bill in the budget.

As the economy normalizes, state revenues are shrinking

An outlook revision to positive for the state's Aa2 general obligation rating comes as a methodology update led to downgrades for certain revenue bonds.

After getting positive outlooks from three rating agencies since 2023, Oklahoma received its first upgrade.

Florida's official outlook indicates the state government faces a $10 billion deficit by mid-2028 without major tax and spending changes.

California's state government typically pushes out billions of dollars of debt from August to November. This year there may be a shift in buy side sentiment.

General fund revenue growth of only 1.1% in the fiscal year that ended Saturday, marks a continued slowdown since fiscal 2022's 26.4% increase.

Nebraska Gov. Jim Pillen signed into law a package of bills that includes caps on spending authority for local cities and counties.

Dolton's unfunded expenditures have soared since 2021, resulting in a negative $3.65 million balance in its general fund, Lori Lightfoot told village trustees.

As governor of Minnesota, Tim Walz has proposed some sweeping investments, including a $3.3 billion bonding bill that was the largest in the state's history.

Tim Walz will be joining Kamala Harris on the Democratic ticket, bringing issues such as infrastructure investment, the child tax credit and his work in public schools front and center.

Though further adjustments may be needed, Fitch Ratings analysts said the budget supports the state at its current AA rating level.

Continued economic growth and budgetary discipline could lead to an upgrade of the state's AA rating over the next two years, S&P said.

Overall state general fund revenue is on track with an October estimate, while the projection for the fiscal 2024-2025 yearend balance faces changes.