1043 ET - Local-government budgets remain in good shape overall, but states will likely have to spend more of their own funds on infrastructure in coming years, Conning's Karel Citroen says. Budgets were beefed up by federal stimulus and other factors in the years after Covid-19. While some have depleted their reserves with tax cuts, for example most still have strong rainy-day reserves, Citroen says. In its most recent annual report on state finances, Conning keeps a "stable" outlook for U.S. local governments. Going into the 2026 fiscal year, changing federal policies mean that states will have to fund "things like infrastructure, education, healthcare" and more, Citroen says. (paulo.trevisani@wsj.com; @ptrevisani)

(END) Dow Jones Newswires

June 04, 2025 10:43 ET (14:43 GMT)

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