Growth in State Revenue Projected to Increase in Fiscal 2015

According to survey conducted by the National Association of State Budget Officers, state revenue growth is projected to accelerate in fiscal 2015, after a significant slowdown in fiscal 2014. General fund revenues are projected to increase by 3.1 percent in fiscal 2015, an improvement from the estimated 1.3 percent gain in fiscal 2014.

Moderate revenue growth is expected to be widespread; 44 states enacted fiscal 2015 budgets
with higher general fund revenues than in fiscal 2014. Economic growth and declines in the unemployment rate have led to an improved outlook for state revenues in fiscal 2015, but state budgets still face challenges from stagnant wages.

The slowdown in fiscal 2014 revenues proved difficult for a number of states, with 19 experiencing revenue declines. And revenue collections fell short of projections in 20 states in fiscal 2014, possibly because the revenue impact from the federal fiscal cliff was greater than some states estimated.

Fiscal 2015 general fund revenues from all sources, including sales, personal income, corporate income and all other taxes and fees, were exceeding original forecasts in 7 states, on target in 26 states and below forecasts in 10 states. Seven states were not able to report
fiscal 2015 revenue collections compared to projections at the time of data collection.