State budgets show largest annual spending increase in 15 years for 2022

State budgets show largest annual spending increase in 15 years for 2022

U.S. states have budgeted for the largest increase in general fund spending since 2007 for fiscal 2022, according to a new report, as economic growth and federal stimulus help boost the local fiscal outlook.

The report, the fall Fiscal Survey of States from the National Association of State Budget Officers, tracks annual budgets for states, most of which are finalized in the spring for a July 1 fiscal year start. States project general fund spending of $1.02 trillion, a 9.3% increase compared to 2021. The median state budget increase is 6.1%.

Source: NASBO

Some of the outsize increase is due to one-time factors arising from the pandemic. In many cases, states are shifting their spending back to their own budgets and away from the use of federal funds. State spending was lower in some cases in fiscal 2021, and funding restored for 2022.



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