In an era of heightened economic uncertainty, state governments are facing unpredictable revenue as well as rising health care, education, and infrastructure costs. How policymakers choose to confront these challenges will affect states and the nation for years to come. Through both research and advocacy, Pew provides data, analysis, and guidance to help states navigate these fiscal challenges and identify potential policy approaches.
Our research—including 50-state assessments—examines key trends in state finances and evaluates states on their performance, underscoring effective approaches and creating an environment for potential reform.
We collaborate with policy leaders in states in a variety of ways:
Research: We conduct comprehensive and policy-relevant research. Our findings give states evidence-based options to address their unique fiscal challenges.
Information sharing: We serve as a resource to policymakers making research-driven decisions to improve fiscal outcomes in their states. We lead webinars, events, and meetings and provide communications assistance to encourage state, regional, and national conversations on budget policies and practices.
Technical assistance and policy advocacy: We provide strategic technical assistance to states seeking to improve their budget practices. Our capabilities encompass policy design, including state comparative analysis; drafting or advising on legislation; offering testimony; and supplying other assistance, as requested.
Through these strategies, our goal is to help policymakers manage economic and revenue volatility, enhance transparency, and improve their states’ fiscal health over the long term.
How States Can Plan for Budgetary Effects of Coronavirus—and Market Swings
The coronavirus is already affecting state budgets, from pressure on public health systems to revenue losses from canceled events. Lawmakers in states such as California are passing emergency funding measures, while other officials—including Maryland Governor Larry Hogan—are looking at withdrawing money from rainy day funds to meet emergency needs.
Coronavirus Outbreak Reinforces Need for Long-Term State Budgeting
The coronavirus outbreak, recent market swings, and the drop in oil prices have introduced a high level of uncertainty into state budget development in recent weeks. Policymakers are scrambling to assess the potential risk and the available options for addressing it.
State officials nationwide fear that a substantial decline in tax collections as a result of the coronavirus pandemic will throw their budgets into turmoil. But they will have to wait for the first hard data on how big the decline might be.
A decade after the Great Recession, states collectively have amassed their largest fiscal cushion in at least two decades. As most states closed out their 2019 budget year, a surge in tax collections drove the total held in savings and leftover budget dollars to a record high.
Fiscal 50: State Trends and Analysis, an interactive resource from The Pew Charitable Trusts, allows you to sort and analyze data on key fiscal, economic, and demographic trends in the 50 states and understand their impact on states’ fiscal health.
Taxes and federal funds together account for 80.3 percent of revenue for the 50 states. Taxes are the largest revenue source in 43 states, while federal funds are greatest in seven: Alaska, Arizona, Louisiana, Mississippi, Montana, New Mexico, and Wyoming.
