State budgets

The state comptroller forecasts a $23.8 billion budget balance at the start of fiscal 2026-27, down from a record $39.4 billion for fiscal 2024-25.

Gov. Gavin Newsom's proposed $322.2 billion budget includes a $228.9 billion general fund, $16.9 billion in reserves and no plans to raise taxes.

Governor Wes Moore of Maryland opened the state's General Assembly with a challenge to cut $2 billion of a $3 billion overall shortage as a new administration in Washington ups the stakes by eyeing a rollback of climate change funding.

California's revenue windfall good budget fortune could go sideways if President-elect Donald Trump torpedoes social programs, Gavin Newsom said Monday.

Kotek has spent the past month working on a very busy agenda involving housing, fires, transportation and construction labor agreements.

The budgeting constraints transformed the state's finances and bond ratings. But critics say the policy's downsides include the stifling of needed investments. 

A bipartisan agreement on a continuing resolution to keep the government open fell apart after intervention from President-elect Trump and Elon Musk, raising concerns about federal funds flowing to states, local governments, and infrastructure projects.

A spike in inflationary costs means a tough road ahead for Washington lawmakers as they take up the budget in the new year.

Federal funds flowing from the American Rescue Plan Act must be obligated by Dec. 31 as the threat of a clawback looms as a possibility.

Overall state and local government credit conditions will remain neutral, Fitch Ratings says, though some storm clouds may be on the horizon.