Summaries of Proposed State Budgets FY2025
What are states planning to budget for in Fiscal Year 2025?
Governors play a key role in state fiscal policy and have been shaping their proposed budgets for FY2025 over the past several months. Proposed budgets are often described as the governor’s “wish list” and will continue to evolve as they make their way through the legislature and back to the governor’s desk for enactment or, in some cases, veto.
Much of the time-limited funding related to COVID that was driving state surplus growth has ended and states have begun to see fewer federal dollars coming into the state and less federal money going out into the economy. States have begun to prepare for flattened economic growth and/or an economic downturn, which could potentially result in revenue shortfalls. Many governors have proposed the use of budgetary reserves for one-time or recurring appropriations and may have to continue use of these sources or find new sources over the next few years, to avoid major funding and program cuts. While the PHE unwinding is expected to be less of a factor driving changes in Medicaid enrollment and spending in FY2025, state revenue declines may negatively impact ongoing investments in Medicaid.
The Sellers Dorsey team put together a special report summarizing states’ overall proposed budgets, as well as their specific Medicaid spending plans and program changes for the year ahead.
What to Expect:
- Priorities states are focusing on for FY2025
- Medicaid and healthcare spending highlights
- Other budget trends, such as housing, transportation, and more!