In addition, states passed modest increases in appropriations totaling $27.8 billion across all program areas for fiscal 2018. Last year, the states’ total appropriations were $25.8 billion.
In fiscal 2017, states recorded a 2.3% growth in general funds revenues. The collections coming in are below original budget projections in 27 states. Twenty-two states decided to cut their mid-year budget totaling $3.5 billion.
For the fiscal 2018, the projected total general fund revenues is 4% based on the states’ approved budgets. The average growth rate is 3.2%.
Furthermore, states enacted tax and fee changes, which resulted to additional revenues of $9.9 billion.
The study found that states continue to strengthen their reserves despite slow revenue growth. Twenty-five states are projecting increases in rainy day fund balances next year.
States have plenty of reasons to be cautious in spending
Michael Cohen, the director of California Department of Finance, commented, “There are plenty of reasons for caution at this point. We’ve not been willing to overcommit to ongoing spending.”
