Governors' budgets for fiscal 2018 are extra cautious as states contend with slow revenue growth, limited budget flexibility, and substantial federal uncertainty, according to the latest Fiscal Survey of the States by the National Association of State Budget Officers.
Key findings from the report include the following:
* State general fund spending would increase just 1 percent compared to current estimated spending levels under governors' fiscal 2018 budgets.
* States experienced sluggish general fund revenue growth in fiscal 2017 of 2.4 percent, with 33 states reporting collections below budget projections.
* At least 23 states have already made net mid-year budget cuts totaling $4.9 billion in fiscal 2017.
* General fund revenues are projected to grow 3.1 percent in fiscal 2018, based on governors' budgets.