Overall, state fiscal conditions weakened in fiscal year 2016 compared to the prior year. Both revenue growth and total state spending experienced a slowdown due to numerous factors. In addition, the number of states making mid-year budget cuts was historically high outside of a recessionary period. In fiscal 2017, it is projected that both state general fund spending and revenue will grow moderately. However, since the start of the fiscal year, over half the states have had to revise their revenue projections downward due to weaker-than-anticipated tax collections. Looking forward, states are not only contending with slow revenue growth and constrained spending, but also federal uncertainty in a number of areas.

Chapter 7 of The Book of the States 2017 contains the following articles and tables:

According to data from the U.S. Travel Association, travel – both domestic and international – has a big impact on economic growth and job creation in the states. In 2015, domestic travelers took almost 2.2 billion trips and 77.5 million international visitors traveled to the U.S. These travelers combined generated $2.1 trillion in output for the U.S. economy and provided jobs for 15.1 million Americans, or one in nine private sector jobs. In addition, travel generated a total of $67 billion in state and local tax revenue.

CSG Midwest
Eight years have now passed since the Great Recession rocked state finances, and since that time, state policymakers have had to settle for a modest recovery and still deal with a difficult fiscal environment. In a July presentation to state legislators, John Hicks, executive director of the National Association of State Budget Officers, detailed just how different — and more challenging — this period has been compared to other post-recession eras.
Since 2011, year-to-year revenue growth in the states has never reached the historic annual average of 5.5 percent, and for fiscal year 2018, the nation’s governors were recommending an increase of only 1.0 percent (and just 0.17 percent in the 11-state Midwest).
“That’s a notable item eight years into a recovery, and it isn’t because we’re cutting taxes and having to balance our budget as a result,” Hicks said during his presentation at the Midwestern Legislative Conference Annual Meeting’s Fiscal Leaders Roundtable. Instead, this slow rise in state spending reflects a “new normal” in tax collections, the result of only moderate increases in gross domestic product and, on top of that, a gap between changes in U.S. gross domestic product and the taxes being collected by states.

According to new data released today by the U.S. Census Bureau, per student spending on public elementary and secondary school systems increased for every state in 2015, except for Arizona where spending decreased by 0.5 percent. Alaska and New York lead the pack, with both increasing spending by more than nine percent. Nationally, per student spending was $11,392 in 2015 – a 3.5 percent increase over the previous year – representing the largest year-over-year increase in per student spending since 2008.

Money flowing into states from the federal government—either to individuals or through state and local governments—has a big impact on a state’s economy. In 2015, federal spending made up 19 percent of state economic activity, or gross domestic product (GDP). In five states—Alabama, Mississippi, New Mexico, Virginia and West Virginia—federal spending was 30 percent or more of GDP in 2015.

CSG Midwest
With a rise in the sale of electric vehicles, states lose some of the revenue that they’ve long relied on to pay for transportation projects: taxes on motor fuels.
CSG Midwest
In Minnesota, the chances of a local school district getting the money it wants to build a new facility or improve existing buildings can depend greatly on where it is located:

The president's federal budget was released May 23 and the analysis of winners and losers began practically before the ink was dry, although almost all of Washington seemed to agree the budget was dead on arrival. Cuts to the Medicaid and Children's Health Insurance Program, or CHIP, alone total $616 billion over the next ten years. The budget also envisions saving $250 billion from partly repealing and replacing the 2010 health care law. Taken together, these Medicaid cuts are nearly half the nondefense discretionary funding cuts. To further understand just how important federal Medicaid funds are to states, CSG looked at 2017 federal funding flowing to the states. According to Federal Funds Information for the States, or FFIS, data, the federal Medicaid funding for 2017 is more than 50 percent of all federal grant funds flowing to states in all but four states.

CSG Midwest
A quarter-century has passed since a U.S. Supreme Court decision limited the ability of states to collect taxes from the remote sales of out-of-state retailers. Legislators wanting to secure that taxing authority — which they say is critical to maintaining state revenue bases and helping brick-and-mortar businesses — believe a reversal of Quill Corp. v. North Dakota may finally be on the horizon.
“I do believe Quill will get overturned; it’s just a matter of time,” North Dakota Sen. Dwight Cook says. And one of the U.S. states most reliant on the sales tax as a revenue source, South Dakota, might bring the case that “kills Quill.”
A year ago, South Dakota lawmakers passed a bill requiring most retailers without a physical presence in the state to remit the state’s sales tax. SB 106 applies to sellers with 200 or more annual transactions in South Dakota or whose gross revenue from sales in the state exceed $100,000. This year, Indiana (HB 1129) and North Dakota (SB 2298) passed “economic nexus” laws of their own.