A year of uncertainty: 2026 brings fiscally challenged budgets and 36 gubernatorial elections
The new year begins with a layer of both fiscal and political uncertainty. For at least 18 states, it will be a year of change in political leadership. After several years of continuous revenue growth, states are crafting their Fiscal Year (FY) 2027 budgets amid slower growth, rising costs, and heightened unease.
The new year begins with a layer of both fiscal and political uncertainty. For at least 18 states, it will be a year of change in political leadership. After several years of continuous revenue growth, states are crafting their Fiscal Year (FY) 2027 budgets amid slower growth, rising costs, and heightened unease. At the same time, the 2026 gubernatorial campaign season also begins in earnest. More than three dozen governorships are on the November ballot, and at least 18 states (see map below) expect to elect a new governor due to an incumbent either being term-limited or choosing not to run for re-election.