State Budgets Back to ‘Normal’ After Covid Boom-Bust, Fitch Says
- Officials see slower state revenue growth, report says
- Budgets appear resilient to economic turbulence in fiscal 2025
School choice programs are another pain point for budgets.
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For years US states have been navigating uncertain, yet ultimately favorable, economic conditions. But now, Fitch Ratings says that the volatility and strong growth of the Covid era is subsiding in a return to normalcy.
“States have transitioned from booming to slowing and, now, to normal growth, with revenues overall expected to be flat or slowly growing in fiscal 2025,” Fitch analysts led by Karen Krop wrote in a report. “States are well positioned to weather economic turbulence in the current fiscal year.”