During the pandemic, States experienced declining revenues from reduced tax capturing. This has resulted in concerns for what will come for State budgets. In recent news, however, state budgets are rebounding.
According to the Urban Institute data, 29 states have recovered their tax revenues. Government Technology Market Insights says that the States are “taking in as much or more revenue in the 12 months since the pandemic began as they did in the 12 months before the pandemic.”
This paired with the three sizeable federal aid packages, states will be more financially stable, and the data projected 10%+ budget growth.
Here are other statistics provided by the Urban Institute:
- States with the most significant gains from prior year collections: Idaho (11%), Utah (8.7%), Colorado (8.0%), South Carolina (7.7%), and South Dakota (7.2%).
- States where losses (largest loss) still exceeded gains: Alaska (-49.2%), Hawaii (-17.4%), North Dakota (-10.9%), and Texas (-10.3%).
As a National Management Consulting firm, we understand how to help states navigate the peaks and valleys of funding to help them focus on projects with the most impact and value. We can assist with thinking strategically and bring our three decades of experience to help inform best practices as we navigate this next recovery phase. It is essential to make financial decisions that will be sustainable as we work together as a Nation to get to stable budgets.
Government Technology Market Insights also shared that many states are considering investing in cybersecurity and broadband solutions that will help lay the foundation for economic advancement for reduced costs long-term. We have extensive experiencing assisting States with procurements and can help quickly through our Master Service Agreements with States, as well as our NASPO ValuePoint Supplier designation. We’d love to assist and have more information for you if you would like to learn more.