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Article March 24, 2026 After years of record highs, states’ rainy day fund capacity—the number of days that reserve balances could cover state operations—fell in fiscal year 2025, the first decline since the 2007-09 Great Recession. As of the end of fiscal 2025, the median state could run on its rainy day fund balances alone for 47.8 days, down from a record 54.5 days in fiscal 2024, according to state data reported to the National Association of State Budget Officers.

Article January 15, 2026 This is one in a series of five articles examining key debates that will unfold in the nation’s statehouses in the year ahead. As the frequency and cost of natural disasters has increased nationwide, states’ approaches to budgeting for catastrophic events has heavily relied on the ready availability of federal funding. But now there is growing uncertainty around the entire disaster assistance system—which funds activities before, during, and after disasters occur.

Article November 18, 2025 Fiscal 2023 marked the first time in at least 22 years that no state had an annual deficit. But even with the record-setting number of annual surpluses, five states incurred long-term revenue shortfalls relative to expenses for fiscal 2009 to fiscal 2023. If left unmanaged, these ongoing gaps can threaten states’ financial well-being.