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STATE AND LOCAL GOVERNMENTS' FISCAL OUTLOOK: 2018 Update

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Report Type Reports and Testimonies
Report Date Dec. 13, 2018
Release Date Dec. 13, 2018
Report No. GAO-19-208SP
Summary:

What's the prognosis for the fiscal health of state and local governments across the nation?

Our annual outlook suggests the sector will have an increasingly tough time covering their bills over the next 50 years. Our model shows both revenue and spending will increase; however, spending will rise faster. Revenues may be insufficient to sustain the amount of government service currently provided.

Our model also suggests health care costs will largely drive the spending increases—in particular, Medicaid spending and spending on health benefits for state and local government employees and retirees.

 

A photo of an American flag.

A photo of an American flag.

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