Five State Fiscal Debates to Watch in 2024

Key public finance issues that are likely to capture policymakers’ attention this year

Five State Fiscal Debates to Watch in 2024
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As legislative sessions begin in statehouses throughout the country, lawmakers face a host of issues that will affect state budgets. This five-part series previews some of the most pressing fiscal questions state leaders are likely to debate in 2024.

Day One: The Transition Away From Pandemic Aid

Federal pandemic aid funding is winding down, creating a fiscal cliff for schools, public transit agencies, and child care providers. State legislators, many already grappling with shortfalls, will need to help fill the gaps.

Day Two: Substantial Budget Shortfalls

After two years of double-digit tax revenue growth, states curbed their expectations for fiscal year 2024—and some are still coming up short. At least seven states are reporting deficits in the current or upcoming fiscal year as budget conditions tighten.

Day Three: Environmental, Social, and Governance Investing

Socially and environmentally conscious investing strategies continue to gain in popularity among investors and financial institutions, but they also increasingly have become a target of state legislation.

Day Four: Artificial Intelligence

Artificial intelligence has emerged as one of the hottest topics for state legislators in 2024. But the technology holds promise but also poses risks to state governments that could affect spending.

Day Five: Natural Disaster Risks

With more frequent and costly natural disasters driving up home insurance rates, especially in Gulf Coast and Western states, lawmakers have taken a range of steps to protect property and state budgets.