The recent decline in state budgets is “largely over,” and those budgets should increase by 1.21 percent next year, GovWin reports.
After state budgets decreased 2.4 percent from 2011 to 2012, a Deltek report forecasts 2013 state budgets will increase by $20 billion to $1.67 trillion overall, which it said was a faster rate of increase than expected.
Deltek forecasts that state budget increases will continue to rise from current levels and the growth rate should reach 2.78 percent by 2014.
From 1987 through 2010, state budget growth stayed consistent at an average of 6.24 percent, but slowed to 3.56 percent in 2011 and fell into the red for 2012.
According to the report, contractors could see an upswing in state government projects.