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As of July 1, 45 states have enacted a full-year budget for fiscal 2027. This is similar to last year, when 44 states had a full-year fiscal 2026 budget in place by July 1.

Thirty-one states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands are enacting a new budget for fiscal 2027, while three states (Kentucky, Virginia, and Wyoming) are enacting biennial budgets for both fiscal 2027 and fiscal 2028. Last year, 15 states enacted biennial budgets for fiscal 2026 and fiscal 2027 while North Carolina enacted a partial budget; several of these states have approved a supplemental budget for fiscal 2027. Forty-six states begin their fiscal year on July 1 (New York begins its fiscal year on April 1, Texas on September 1, and Alabama and Michigan on October 1). Puerto Rico begins its fiscal year on July 1, while the District of Columbia, Guam, and the U.S. Virgin Islands begin their fiscal year on October 1.

Below is additional information on states that have yet to enact a full-year budget for fiscal 2027. Additionally, Table 12 of NASBO’s Budget Processes in the States has information on procedures if no budget is enacted by the start of the fiscal year.

1. Massachusetts – The legislature is expected to vote on a budget proposal this week; the governor would then have 10 days to review the budget bill. Massachusetts is currently operating under a temporary budget.
2. Michigan – The legislature has yet to finalize the state’s budget bills for fiscal 2027. Michigan’s fiscal year does not begin until October 1.
3. North Carolina – Lawmakers are expected to begin voting on a budget agreement for fiscal 2026-2027 this week. The state has yet to pass a complete budget for the biennium that began on July 1, 2025. State law allows spending to continue at current levels until a new budget is enacted, and the state has also enacted partial budgets funding certain programs and agencies.
4. Pennsylvania – The legislature has yet to reach a budget agreement for fiscal 2027. An enacted budget is required by the start of the year to maintain full spending authority, although some funds are still allowed to be spent.
5. South Carolina – Lawmakers have not yet finalized a fiscal 2027 budget agreement. South Carolina is currently operating under a continuing resolution, which keeps spending levels the same as fiscal 2026.

States worked to finalize budgets for fiscal 2027 amid continued tight fiscal conditions. According to NASBO’s Spring 2026 Fiscal Survey of States, governors’ proposed budgets for fiscal 2027 call for general fund spending to increase 0.6 percent on a median basis compared to estimated fiscal 2026 levels. Additionally, strategies such as targeted spending cuts, eliminating vacant positions, revenue increases and other measures were commonly used. General fund revenue in fiscal 2027 is projected to grow 2.5 percent above current estimates for fiscal 2026, marking the fifth consecutive year of modest revenue growth. For the just-completed fiscal 2026, most states are expected to see revenues exceed original projections and reported positive April revenue totals, though substantial year-end surpluses are unlikely. While expenditure and revenue growth are expected to remain modest in fiscal 2027, most states are projected to maintain or increase their rainy day fund balances in nominal dollars. As states move through fiscal 2027, they will contend with slow revenue growth, reduced surplus funds, federal policy changes, and ongoing spending demands. 

Please click here for links to proposed and enacted budgets, as well as prior budget summaries.