State general revenue spending to decline for first time since Great Recession

In fiscal 2021, general revenue spending by U.S. is expected to decline for the first time since the Great Recession based on the most current estimates by the National Association of State Budget Offices.

After nine consecutive years of spending growth in the states, weaker revenue projections from the COVID-19 pandemic and subsequent restrictions on economic activity is causing states’ general revenue spending to decline by 1.1% from projected 2020 spending and by 5.5% when compared to governors’ pre-pandemic budget proposals, according to currently enacted budgets.