State budgets

Municipal Market Analytics questioned Moody's swift revision of California's outlook to negative after Gov. Newsom's May budget revisions posted.

Weakening revenues should be a red flag for states, particularly those planning tax cuts, said Lucy Dadayan of the Urban Institute's Tax Policy Center.

With a healthy surplus built over several years, the state adopted a series of tax relief measures. Those actions, along with robust growth in fiscal 2022 that triggered an automatic tax cut, are driving revenue projections lower.

Panelists at the National Federation of Municipal Analysts discussed their experiences dealing with resiliency in the face of budgetary and environmental problems.

The governor outlined what he called a balanced budget, though the revenue shortfall has grown by $9.3 billion to $31.5 billion since January.

Illinois trimmed revenue estimates for the current fiscal year and must absorb higher social services expenses next year leaving less budget room to maneuver.

Although Hawaii lawmakers nixed his proposed tourist tax, Gov. Green points to positives.

Continued commitments to meeting long-term liabilities under Gov. Phil Murphy were cited as key in a slew of recent bond rating upgrades for the Garden State.

Circuit Judge John K. Bush cited Alexander Hamilton's insistence in the Federalist Papers that states would retain their authority over their own taxation.

The Missouri House approved legislation to strip St. Louis of its earnings tax on remote work; Wisconsin lawmakers unveiled a plan to raise revenue sharing.

The House is holding onto the bill until an agreement is reached with the Senate on public school funding.

The state Senate on Tuesday gave a green light to the general appropriations act, which now goes into a constitutionally required 72-hour cooling off period before a Friday vote.

Additional spending was permitted by a rosier revenue forecast that lifted expected general fund revenues through the next biennium.

Maine's tax collection season was better than expected, bucking expectations at the threat of looming recession, a state committee told lawmakers.

While fiscal 2023 and 2024 budgets remain balanced, outyear gaps increase to $4.2 billion, $6.0 billion and $7.0 billion in fiscal 2025 through 2027, respectively.

Almost a month late, the New York Senate and Assembly are expected to soon pass the $229 billion fiscal 2024 budget.

Pandemic funding cuts may pop up in any of the four big-ticket, must-pass bills Congress will take up this year.

"The funds made available to local governments in the American Rescue Plan Act have been a lifeline to our nation's communities," said National League of Cities CEO Clarence Anthony.

The bill follows the same lines as Gov. Maura Healey's tax relief package proposed in February, but comes with a smaller price tag.

Texas, Virginia, Idaho, Mississippi, Montana, Nebraska, New Hampshire, South Dakota and Utah, have all signed briefs urging the Court to take on the case.