U.S. states plan to slow spending growth in fiscal 2016, taking a cautious approach to forecasting and budgeting amid only modest increases in revenue, according to a survey of states published on Tuesday.
General fund spending will rise by 3.1 percent for the fiscal year beginning July 1, below the estimated 4.6 percent for the current year, according to the semi-annual survey by the National Association of State Budget Officers (NASBO).
Growth continues to be a "modest slog up the hill," compared with what the association would expect to see in an economic recovery, NASBO Executive Director Scott Pattison said in an interview.
Overall, revenue collection is forecast to increase by 3 percent in fiscal 2016, compared with an estimated 3.7 percent gain this fiscal year. In fiscal 2014, revenue rose by just 1.6 percent as states continued to struggle to rise out of the recession.