Episode Details

States are tightening their belts as fiscal year 2027 looms, with most governors proposing flat budgets amid rising costs and sluggish growth. Nearly half are slashing spending—eliminating vacant roles, freezing hires, and even tweaking retirement benefits—with some resorting to layoffs. While 25 states aim to bolster their rainy day funds, inflation is shrinking their buying power. Revenue’s up, but modestly—thanks to past federal stimulus, not current tax hikes. States are stuck between higher demands and slower income, navigating a much tighter fiscal reality.

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