Fiscal Review Shows City and State Finances Improving

March 16, 2017

In the past few years, the fiscal conditions of state and local governments have stabilized, but improvements have been uneven, according to a new fact sheet issued by a group of associations representing state and local government agencies. The State and Local Fiscal Facts 2017 fact sheet highlights state and local finances, pensions, and municipal bonds. 

For states, 2016 brought a moderate improvement in fiscal conditions, and general fund spending is on track to grow modestly in 2017 for the seventh consecutive year. Fiscal improvement has been uneven across states due to declining energy prices, differing tax and spending policies, regional economic disparities, and changes in population and demographics. States also face rising spending demands and long-term budget pressures in areas including healthcare, education, infrastructure, and pensions.

City fiscal conditions are strengthening, driven by better-than-anticipated revenue growth and solid performance of ending balances. Factors most negatively influencing city conditions include increases in infrastructure demands and employee and retiree-related costs. Positive factors include the value of the city tax base, health of the local economy, and in most cities, the drop in gas and oil prices.

Counties still face a constraining fiscal environment, and nearly half of county officials responding to a 2016 National Association of Counties (NACo) survey indicated a reduction or elimination of a county program or service because of budget constraints or unfunded state and local mandates in the past fiscal year.

Although some state and local government pension trusts are fully funded with enough assets for current pension obligations, some areas are concerned about underfunding. In most cases, a modest increase in contributions to take advantage of compound interest, or modifications to employee eligibility and benefits, or both, will be sufficient to remedy the underfunding problem, according to the fact sheet.

For the full fact sheet, click here.

Comment On This Story

Comment: (Maximum 10000 characters)  
Leave this field empty:
* Please note that every comment is moderated.


Fleet Management And Leasing

Jack Firriolo from Merchants will answer your questions and challenges

View All


Public Fleet Tracking And Telematics

Amin Amini from Verizon Connect will answer your questions and challenges

View All


Fuel Management

Bernie Kanavagh from WEX will answer your questions and challenges

View All


Recent Topics

We are in process of auditing different departments for underutilized vehicles and have already come across vehicles that we need to...

View Topic

How many different types of antifreeze do you stock? I’m curious to know what others are doing to deal with the numerous specifications...

View Topic

Fleet Documents

1126 Fleet Documents (and counting) to Download!

Sponsored by

Helene Kamon began her industry career in 1970 working for Dealers CadiLease, later purchased by Union Leasing.

Read more