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On December 23, 2020, the National Association of State Budget Officers (NASBO) released its semi-annual report, Fall 2020 Fiscal Survey of States. The report updates information on the states’ fiscal conditions, including aggregate and individual state data on general fund receipts, expenditures, and balances. The survey was conducted by NASBO and completed by state budget officers in all 50 states over the period from August 2020 through October 2020.

The report highlights states’ enacted budgets for fiscal 2021. The survey shows state general fund spending in fiscal 2021 is projected to decline for the first time since the Great Recession, based on enacted budgets. After nine consecutive years of budget growth, states experienced revenue declines in fiscal 2020, and greater decreases are expected in fiscal 2021. Due to the COVID-19 recession, weakening revenue projections resulted in states reducing general fund spending by 1.1% compared to fiscal 2020. Also, compared to governors’ budgets proposed before the pandemic, states’ enacted budgets indicate a 5.5% reduction in general funding spending totaling $52 billion.

Before the pandemic, rainy day funds and total balances were at record highs. However, these amounts have been declining since states have had to use their reserves to address budget shortfalls. The report also notes that, “The fiscal 2021 data in this report represent a point in time, as spending and revenue projections continue to be moving targets. State-by-state data also reflect differing points in time depending on when a state enacted its budget for fiscal 2021 and how often a state revises its revenue forecast.”

The full report and summary are available here.