Industry News

Recently, 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, 2026 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:  

• In Fiscal Year (FY) 2025, total state spending increased 5.7% growing moderately for a fourth consecutive year, following record growth in 2021.
• In FY 2026 enacted budgets, state general fund spending is projected to increase 1.3% after four years of annual expenditure growth of at least 6.0% and the median annual growth rate is projected to increase 0.2%.
• In FY 2026, general fund revenue is projected to increase by 0.3% on a median basis following similar modest growth in FY 2023 through FY 2025.
• Most states continue increasing their rainy-day funds. In FY 2026, the median balance is projected at 14.4% based on enacted budgets, with total fund balances projected to continue declining as states spend down prior-year surpluses.
• As of September 30, 2025, state and local retirement trusts held $6.7 trillion in assets.
• The portion of total combined state and local government spending for retirement system contributions is 5.1%.
• 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.