State Budget and Tax
Almost every state should adopt a much more rigorous approach to their long-term budget planning. This report ranks the states on the degree to which they use ten proven tools to help states chart their fiscal course accurately and make mid-course corrections when needed.
The report’s findings cut across regional and partisan divides: Connecticut, Maryland, and Tennessee incorporate most of the ten tools into their budget process, for example, while New Jersey, Oklahoma, and South Dakota incorporate the fewest .
“People across the political spectrum can agree on the need for good fiscal planning,” said Senior Fellow Elizabeth McNichol, co-author. “It can improve a state’s business climate, help it cope with economic ups and downs, and make government more effective.” Read more
State and local governments are the main source of funding for K-12 education, public colleges and universities, health care, transportation, public safety, and many other services — including services for low-income and other vulnerable residents. They finance these services mostly through taxes and fees, primarily income and sales taxes. (Not every state has an income and sales tax.) Unlike the federal government, states must balance their budgets on an annual basis.
The Center’s State Fiscal Project works with state officials and state-based nonprofits to develop responsible budget and tax policies that take the needs of low-income families into account. We provide information and technical assistance on a variety of issues, including strengthening state tax systems, state budget priorities, and making low-income programs more effective. We also help state nonprofits understand how federal budget and tax decisions affect states and their residents.
March 7, 2014
Updated February 28, 2014
Proposed “Business Activity Tax Nexus” Legislation Would Seriously Undermine State Taxes on Corporate Profits And Harm the Economy
Updated February 26, 2014
February 18, 2014
February 4, 2014
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The State Fiscal Analysis Initiative
The State Fiscal Analysis Initiative brings together nonpartisan, independent, nonprofit organizations in more than 30 states. These organizations have diverse backgrounds and missions, but they share a commitment to rigorous policy analysis, responsible budget and tax policies, a particular focus on the needs of low- and moderate-income families.