Industry News

On February 26, 2025, the National Governor’s Association (NGA), National Conference of State Legislatures (NCSL), National Association of State Retirement Administrators (NASRA), Government Finance Officers Association (GFOA) and seven other organizations representing state and local governments, elected officials and public finance professionals updated a joint publication titled, 2025 State and Local Fiscal Facts. 

The annual report covers the fiscal condition of states and localities, municipal bonds and public pensions.  It provides detailed information regarding state, county and local finances; municipal bankruptcy; types and level of municipal debt and their security; and the fiscal condition of state and local pensions.  

Some of the facts reported include: 

• As of September 30, 2024, state and local retirement trusts held $6.25 trillion in assets.
• In FY 2024, total state spending rose by 6.2% increasing moderately for a third consecutive year, following record growth in 2021.
• In FY 2025, 31 states are projecting general fund spending increases based on enacted budgets and the median annual growth rate for the 50 states is estimated to increase 1.9%.
• In FY 2025, general fund revenue is projected to increase by 1.9% following similar modest growth in  FY 2024 and an annual revenue decrease in FY 2023.
• Most states continue increasing their rainy-day funds. In FY 2025, the median balance is projected at 14.4% based on enacted budgets.
• Over the last 15 years, most states have increased required employee contribution rates ranging from 5-10% of their payroll due to economic and market changes.
• Since the Global Financial Crisis, every state and many local governments have made changes to pension benefit levels, financing arrangements, or both.

The report is available here.