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National Organizations Issue Report on State and Local Fiscal Facts for 2020

In June 2020, the National Governors Association (NGA), National Conference of State Legislatures (NCSL), National Association of State Retirement Administrators (NASRA), Government Finance Officers Association (GFOA) and seven other organizations representing public sector officials and employees published a report titled, State and Local Fiscal Facts – 2020.  The annual report covers the fiscal condition of states and localities, municipal bonds, and public pensions.  It provides detailed information regarding state, county and local finances; municipal bankruptcy; types and level of municipal debt and their security; and the fiscal condition of state and local pensions.  The 2020 report also includes the economic impacts of the COVID-19 pandemic on operations, revenues, and demands on government services.  Some of the stated facts include:

  • Over the last two consecutive years, most state fiscal conditions have had moderate-to-robust growth in general fund revenue that exceeded budget projections in fiscal year (FY) 2018 and FY 2019.
  • In FY 2019, 25 states spent less than the pre-recession peak in 2008, in real dollar terms.
  • In FY 2019, 46 states reported preliminary revenues that exceeded their revenue projections.
  • Most states continue increasing their rainy-day funds.  In FY 2019, 41 states reported balance increases and the median balance grew to 7.6% as a share of general fund spending, up from a low of 1.6% in FY 2010.
  • Since 2009, every state and many local governments have made changes to pension benefit levels, financing arrangements, or both.
  • Due to the economic downturn resulting from the pandemic, local governments anticipate budget shortfalls of over $360 billion between 2020 and 2022.
  • State and local retirement systems reported withstanding the COVID-19 crisis by having administrative operations working remotely, monthly benefit payments being paid on a timely basis, and public pension fund assets continuing to be managed and invested in the financial markets.

The report is available here.