The National Association of State Budget Officers (NASBO) recently released a review of the state budget landscape for fiscal year (FY) 2015, which began on July 1. Career Technical Education (CTE) receives its funding through a variety of streams – including from these state budgets. While the report does not speak to CTE funding directly, understanding a state’s fiscal health is important, particularly after many continue to recover from the recession.
According to the governors’ proposed budgets, state spending is projected to grow moderately for the fifth consecutive year – to $750.1 billion, a 2.9 percent increase from FY 2014. Though state revenues are projected to grow, gains are expected to be constrained by economic growth and a weak labor market, as they were in 2014. On average, states expected to see an estimated 5 percent increase in FY 2014, but in the end, only saw growth of 4.3 percent. While many states are expected to surpass pre-recession spending levels in FY 2015, 10 recommended states budgets remain below pre-recession highs.
Mid-year program cuts can be a clear sign of fiscal distress, according to the report. In FY 2014, nine states made mid-year cuts to K-12 and five made cuts to higher education. With modest fiscal advances for FY 2015, 39 governors have proposed increases to core services such as K-12 ($10.9 billion) and postsecondary education ($3.5 billion). Three states have proposed overall cuts to K-12 and five recommended slashing higher education funding.
Be sure to check out the full NASBO report for a state-by-state breakdown of changes to state aid, expenditures, revenues and much more.
Andrea Zimmermann, State Policy Associate
Tags: state funding