Fiscal Year
A fiscal year is the 12-month accounting period used by a government entity for budgeting and financial reporting, which varies by jurisdiction and does not always align with the calendar year.
What Is a Fiscal Year?
A fiscal year is the 12-month period a government entity uses for budgeting, accounting, and financial reporting. Unlike the calendar year (January through December), government fiscal years often start and end on different dates depending on the jurisdiction.
For vendors selling to SLED agencies, understanding fiscal years is essential because they determine when budgets are approved, when money is available to spend, and when end-of-year spending surges happen.
Common Government Fiscal Years
| Entity Type | Fiscal Year | End-of-Year Spending Surge |
|---|---|---|
| Federal government | October 1 - September 30 | July - September |
| Most state governments | July 1 - June 30 | April - June |
| School districts | July 1 - June 30 (most) | April - June |
| Some states (NY, TX, others) | April 1 - March 31 or September 1 - August 31 | Varies |
| Cities and counties | Varies widely by jurisdiction | Check locally |
Why Fiscal Years Matter for Vendors
Budget timing
Agencies can only spend money that has been appropriated for the current fiscal year. New budgets are approved before the fiscal year starts, which means the best time to engage agencies about new purchases is during the budget planning cycle, typically 3 to 6 months before the fiscal year begins.
End-of-year spending
Use-it-or-lose-it policies mean that departments rush to spend remaining budget dollars before the fiscal year ends. This creates a predictable surge in procurement activity. For most SLED agencies with a July-June fiscal year, the spending surge happens in April through June.
Encumbrance deadlines
Agencies must encumber funds before the fiscal year ends to avoid losing them. This means purchase orders and contracts are often finalized in the last quarter, even if delivery happens later.
Grant funding timelines
Many grants, including ESSER and E-Rate, have spending deadlines tied to fiscal years. When grant money expires, it creates urgency that vendors can align their outreach to.
Fiscal Year Planning for Sales Teams
- Map your territory's fiscal years. Know when each target agency's fiscal year starts and ends. This is the foundation of your outreach calendar.
- Engage during budget planning. Reach agencies 3 to 6 months before their fiscal year starts, when departments are submitting budget requests.
- Push during Q4. The last quarter of the fiscal year is when unspent money gets allocated. Be ready with quick-turn proposals and pre-approved contract vehicles.
- Track buying signals by fiscal calendar. A budget approval in July (start of FY for most states) means new money is available. An RFI in March means the agency wants to spend before June.
Frequently Asked Questions
What is a fiscal year in government?
A fiscal year is the 12-month accounting period a government entity uses for budgeting and financial reporting. Most state and education entities use July 1 through June 30. The federal government uses October 1 through September 30.
Why don't all governments use the same fiscal year?
Fiscal years are set by each jurisdiction's laws and constitution. States choose fiscal year dates that align with their legislative sessions and budget processes. Cities and counties may follow state fiscal years or set their own.
How does the fiscal year affect government purchasing?
Budgets are approved annually by fiscal year. Agencies can only spend allocated funds within the fiscal year. This creates predictable patterns: budget planning before the FY starts, procurement activity throughout, and a spending surge at the end.
When is the best time to sell to government agencies?
The best times are during budget planning (3-6 months before the fiscal year starts) and during the end-of-year spending surge (last quarter of the fiscal year). For most SLED agencies, that means October-December for budget influence and April-June for closing deals.
What happens to unspent budget at the end of a fiscal year?
In most jurisdictions, unspent funds are returned to the general fund. This use-it-or-lose-it dynamic drives departments to encumber remaining budget before the fiscal year ends, creating procurement opportunities for vendors.