2025 Legislative Session Dates
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Key Takeaways:

  • Several times a year, our tax team does a survey of each state’s short-term fiscal outlook to determine if a state's revenues are relatively stable, or if it will likely face short-term fiscal challenges. Not much has changed since our February update.
  • The majority of states still have a generally positive short-term fiscal outlook (34 states in total as of this month). Several states, however, are facing significant short-term challenges (7 states).
  • We also have a category called “conditional” fiscal outlook, which means a state’s revenue health could go either way, depending on certain current extenuating circumstances. As of March, nine states fall into this category.
  • Federal funding and staffing cuts continue to be a concern for many state lawmakers, with unemployment insurance for terminated workers adding to state costs and the potential for increased funding for programs such as Medicaid and SNAP on the horizon.


Several times a year, our tax team does a survey of each state’s short-term fiscal outlook to determine if a state's revenues are relatively stable, or if it will likely face short-term fiscal challenges. A state’s fiscal picture is a major policy driver, so it’s important for state government affairs professionals to keep an eye on state fiscal health.

Not much has changed since our February update. The majority of states still have a generally positive short-term fiscal outlook (34 states in total as of this month). Several states, however, are facing significant short-term challenges (Colorado, Illinois, Maryland, New Jersey, New York, Pennsylvania, and Washington). In Illinois, for example, the General Assembly’s Commission on Government Forecasting and Accountability recently released a fiscal year 2026 projection which is $737 million less than Governor Pritzker’s (D) budget proposal — a difference of 1.3%. The Commission cited economic uncertainties related to tariffs, non-tarriff federal policies, and geopolitics as warranting a cautious approach to the outlook for income tax and sales tax collections. Similarly, in New York, the state’s structural deficit is still significant despite the fact that it's reported to be shrinking. A recently updated financial plan estimates a $13.9 billion budget gap, down from previous estimates of $27.1 billion. However, receipts have been coming in lower than estimated in the updated financial plan, so the revenue picture could prove to be more challenging. 

We also have a category called “conditional” fiscal outlook, which means a state’s revenue health could go either way, depending on certain current extenuating circumstances. As of March, nine states fall into this category (Alaska, California, Iowa, Massachusetts, Minnesota, Nebraska, Rhode Island, Tennessee, and Utah). 


Federal funding and staffing cuts continue to be a concern for many state lawmakers, with unemployment insurance for terminated workers adding to state costs and the potential for increased funding for programs such as Medicaid and SNAP on the horizon. We will continue to monitor states’ fiscal health as legislatures head into adjournment. 

Track and Influence State Tax Policy

Tax policy can be one of the most challenging areas for government affairs executives. MultiState’s team understands the issues, knows the key players, and helps you effectively navigate and engage. We offer a customized, strategic solution to help you develop and execute a proactive multistate tax legislative agenda. Learn more about our Tax Policy Practice.