(The Center Square) â 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 statesâ general revenue spending to decline by 1.1% from projected 2020 spending and by 5.5% when compared to governorsâ pre-pandemic budget proposals, according to currently enacted budgets.
âStates this year have faced tremendous uncertainty in their revenue forecasts and budget outlooks,â NASBO President Kate Ness said in a statement. âRevenue estimates continue to be below pre-pandemic projections, while an uneven recovery is contributing to rising spending pressures at the same time.â