An overview of state revenue trends, fiscal capacity, and budget pressures as legislatures begin the 2026 session
States are navigating a period of shifting fiscal conditions as revenue growth moderates, federal policy changes take effect, and long-term cost pressures persist. In this policy webinar, CSG South examined the fiscal landscape facing states and the factors shaping budget decisions during the 2026 legislative session.
The discussion focused on recent trends in state revenues and reserves, providing a snapshot of how states are positioned following several years of strong fiscal performance. The webinar reviewed changes in tax collections, compared reserve levels across states, and assessed what these indicators reveal about current fiscal capacity.
Panelists also addressed key spending pressures affecting state budgets, with particular attention to Medicaid costs and broader economic uncertainty. The session highlighted how these pressures vary by state and how they are influencing budget planning and policy priorities during the session.
Liz Farmer, senior officer at The Pew Charitable Trusts, shared a data-driven analysis to support policymakers and staff in interpreting fiscal indicators and emerging trends. The webinar emphasized the value of using timely, reliable data to inform budget decisions in an active legislative environment.
Watch the full webinar recording below to learn more.