The budgeting process in many states often begins with the executive branch, as the governor releases a recommended budget for the upcoming fiscal year. State legislators often use the proposed budget as a starting point for budget development.

As of April 2026, governors in 40 states have released proposed FY2027 budgets or executive budget recommendations, outlining their priorities for the coming fiscal year. This includes eight biennial budget states, where governors proposed revisions to existing two-year spending plans. Given that the state fiscal year for most states begins on July 1, state legislatures will be negotiating final budgets over the next few months.  Sellers Dorsey will continue to track this progress and plans to share enacted budget summaries in the fall.

In the meantime, our team of experts created an executive summary of available proposed state budgets for FY2027. The summary highlights key themes across 40 states, including:

1. Budget pressures and spending cuts
2. Affordability and tax changes
3. State workforce changes and pay adjustments, and
4. Investments in behavioral health and children and families