NASBO: State Spending to Increase for 6th Straight Year

In 2016, states are expected to continue the growth they've experienced since the Great Recession. But the new era of growth is a modest one.

State spending will rise this year for the sixth straight year, but the increases continue to be moderate as states settle in to the slow-growth era, according to a new report.

States are expected to spend just over $790 billion from their general funds in fiscal 2016. That's up 4.1 percent over fiscal 2015, although it's a slightly smaller rate of increase than last year. The numbers are detailed in a report released Tuesday by the National Association of State Budget Officers (NASBO). After several years of turmoil during and after the 2008 recession, states have now seen more than half a decade of steady spending increases, representing an era of stability.

But the new era is a modest one. Spending growth these days is unlikely to hit the historic 5.5 percent average annual growth states saw before 2008. And according to NASBO, total spending in 2015 was still about 4 percent below inflation-adjusted spending in 2008.

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