States Face Hard Choices as Budgets Expected to Tighten
- Last Sunday, Virginia's General Assembly money committees approved budgets boosting public school funding amid sharp House–Senate divides.
- The revenue shortfall, with the House operating nearly $3 billion less, explains the scale differences between the House and Senate budget proposals.
- The Senate deferred a $2.1 billion tax deduction proposal, while the House’s loan-rebate program uses over $500 million in state funds to leverage up to $2 billion in bonds for school modernization, plus $170 million for staffing.
- Following Thursday’s votes, the conference committee will negotiate budget differences as Gov. Youngkin prepares to propose amendments, shaping Virginia’s fiscal future amid tight revenues.
- According to a NASBO survey, many states are lowering revenue forecasts and may need midyear adjustments due to upcoming federal tax and spending changes.
14 Articles
14 Articles
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States face hard choices as budgets expected to tighten
The Louisiana State Capitol. (Julie O'Donoghue/Louisiana Illuminator)Slow revenue growth continues to pinch state budgets across the country, leading governors to propose spending cuts, hiring freezes and some tax increases. In its spring survey of states, the National Association of State Budget Officers found that general fund spending will hold steady in fiscal 2026 as states expect limited revenue growth but increased costs. Though most sta…
Senate budget sweetens teacher, state worker pay, House lowers raise; split on size of tax cuts
Public schools would get big boosts in the state budgets the General Assembly money committees approved on Sunday, from restoring state funding for school support employees to a proposed loan-rebate
States are bracing for the impact as revenue growth slips
State budgets across the country are feeling the pinch as governors increasingly are suggesting spending cuts, hiring freezes and some tax increases, Louisiana Illuminator writes. A spring survey by the National Association of State Budget Officers shows that while most states are meeting current projections, many are revising expectations downward for the coming year. States typically wrap up budget work by the end of June, with the next fisca…
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