
State Governments Face Budget Uncertainties
- June 18, 2025
State governments are required to maintain balanced budgets that ensure revenues equal expenditures. Any budgetary shortfall requires lawmakers to make calculated decisions to either reduce government services or generate additional revenue through tax and fee increases. There is growing uncertainty within the states of projected state revenues as President Donald Trump and Congress attempt to restructure federal support for state services and programs. The revenue concerns in the states are furthered by economic growth questions, inflation and the conclusion of the one-time pandemic relief funding from the federal government.