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2020 State Budget Outlook

Fiscal Year (FY) 2019 revenues universally exceeded budget expectations. No states made mid-year budget cuts based on revenue shortfalls. That’s down from a peak of 41 in FY2009 and 22 states in FY2017. The revenue outperformance has allowed 28 states to add to reserves.1 Median rainy day fund levels hit an all-time high of 7.5% of general fund spending, up from 1.6% in fiscal 2010.2 At the median, states are more resilient now than the prior year, but outliers still exist.

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