State Economies Archive
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Strategies to Address the State Tax Volatility Problem
April 18, 2013
State revenues plummet in recessions, just when states can least afford the loss. Some proposals to address this flaw in state tax systems would change the systems’ structure — for instance, by replacing state personal income taxes with sales taxes — but wouldn’t solve the problem and would exacerbate others in … -
Media Briefing: Examining States’ Dramatic Higher Education Cuts and Tuition Increases
March 19, 2013
The Center on Budget and Policy Priorities held a conference call briefing to discuss the deep cuts almost every state has made to public universities and colleges, and explains how those cuts hurt students and state economies.
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Recent Deep State Higher Education Cuts May Harm Students and the Economy for Years to Come
March 19, 2013
As states prepare their budgets for the coming year, they face the challenge of reinvesting in public higher education systems after years of damaging cuts — the product of both the economic downturn and states’ reluctance to raise additional revenues. In the past five years, state cuts to higher education funding … -
States Made Deep Cuts to Higher Education, New Report Finds
March 19, 2013
Public universities and colleges in nearly every state have seen their state funding decline sharply, according to a new report from the Center on Budget and Policy Priorities. Nationwide, states are on average spending 28 percent less this year than they did in 2008, a decrease of $2,353 per student. As a result, colleges and universities have had to … -
Strengthening State Fiscal Policies for a Stronger Economy
Updated March 11, 2013
Strengthening state economies and creating jobs — now and into the future — will require sensible, forward-looking state fiscal policies. States need to invest adequately in education, health care, transportation, and workforce development. To do that, they need to generate sufficient revenue, and they need to do so … -
Cutting State Personal Income Taxes Won’t Help Small Businesses Create Jobs and May Harm State Economies
February 19, 2013
Cutting state personal income taxes not only won’t promote small business growth and job creation, but it is also likely over time to threaten the success of entrepreneurs by taking resources away from critical services like education. Until recently, most proposals to cut state taxes in the name of boosting economic growth and job … -
Four Big Threats to State Finances Could Undermine Future U.S. Prosperity
February 14, 2013
Without adequate revenues, states and localities cannot continue providing public services like education, health care, and infrastructure that lay the groundwork for a prosperous future. But state revenue systems face four serious challenges. The most severe recession in seven decades blasted holes in state budgets from … -
Testimony of Jared Bernstein, Senior Fellow, Before the House Education and Workforce Committee
February 5, 2013
Chairman Kline and ranking member Miller, I thank you for inviting me to testify today on issues directly in the wheelhouse of this committee: education, skills, and jobs. My testimony begins by looking at the current jobs situation with an emphasis on educational investments. I then discuss ways in which recent budget cuts are threatening the … -
New School Year Brings More Cuts in State Funding for Schools
Updated September 4, 2012
States have made steep cuts to education funding since the start of the recession and, in many states, those cuts deepened over the last year. Elementary and high schools are receiving less state funding in the 2012-13 school year than they did last year in 26 states, and in 35 states school funding now stands below 2008 levels … -
States Continue to Feel Recession’s Impact
Updated June 27, 2012
As a new fiscal year begins, the latest state budget estimates continue to show that states’ ability to fund services remains hobbled by slow economic growth. The budget gaps that states have had to close for fiscal year 2013, the fiscal year that begins July 1, 2012, total $55 billion in 31 states. That amount is smaller … -
New CBO Report Finds Hundreds of Thousands of People Still Owe Their Jobs to the Recovery Act
Updated May 29, 2012
A new Congressional Budget Office (CBO) report estimates that the American Recovery and Reinvestment Act (ARRA) increased the number of people employed by between 200,000 and 1.5 million jobs in March.[1] In other words, between 200,000 and 1.5 million people employed in March owed their jobs to the Recovery Act. This estimate, … -
Out of Balance
April 18, 2012
The state budget gaps of the last five years led to $290 billion in cuts to public services and $100 billion in tax and fee increases. Those actions lengthened the recession and delayed the recovery. Because spending reductions were dominant, hundreds of thousands of jobs were lost; undermining education, health care and other state … -
The Texas Economic Model: Hard for Other States to Follow and Not All It Seems
April 3, 2012
Whatever its boosters may say, Texas is not a helpful model for economic growth for the rest of the country. True, the number of people and jobs in Texas has been expanding, causing other states to wonder whether Texas holds important lessons for state policies that can generate similar growth elsewhere. The answer is no. Texas has … -
New CBO Report Finds Up to Two Million People Still Owe Their Jobs to the Recovery Act
Updated February 24, 2012
View the most recent version of this report: New CBO Report Finds Hundreds of Thousands of People Still Owe Their Jobs to the Recovery Act Updated May 29, 2012 A new Congressional Budget Office (CBO) report estimates that the American Recovery and Reinvestment Act (ARRA) increased the number of people employed by between 300,000 and 2 million jobs … -
Improving Budget Analysis of State Criminal Justice Reforms: A Strategy For Better Outcomes and Saving Money
January 11, 2012
Issued Jointly With An increasing number of states are considering criminal justice reforms proven to protect the public and produce significant cost savings. For example, some states are offering effective addiction treatment to more people convicted of drug-related crimes instead of incarcerating them. Other … -
Slideshow: The State Budget Crisis and the Economy
Updated December 19, 2011
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New CBO Report Finds Up to 2.4 Million People Owe Their Jobs to the Recovery Act
Updated November 23, 2011
View the most recent version of this report: New CBO Report Finds Hundreds of Thousands of People Still Owe Their Jobs to the Recovery Act Updated May 29, 2012 A new Congressional Budget Office (CBO) report estimates that the American Recovery and Reinvestment Act (ARRA) increased the number of people employed by between 0.4 million and 2.4 million jobs … -
TANF Benefits Fell Further in 2011 and Are Worth Much Less Than in 1996 in Most States
November 21, 2011
Cash assistance benefits for the nation's poorest families with children fell again in purchasing power in 2011 and are now at least 20 percent below their 1996 levels in 34 states, after adjusting for inflation. While most states froze benefit levels in 2011, six states and the District of Columbia cut them, reducing … -
The Current Services Baseline: A Tool for Understanding Budget Choices
October 21, 2011
When governors and legislative bodies put forward state budget proposals, they almost always recommend changes in state policies, such as increases or reductions in the number of people eligible for state services, alterations in formulas used to fund schools and local governments, changes in staffing levels, and so on. To … -
New School Year Brings Steep Cuts in State Funding for Schools
Updated October 7, 2011
To view the updated paper see: New School Year Brings More Cuts in State Funding for Schools Elementary and high schools are receiving less state funding than last year in at least 37 states, and in at least 30 states school funding now stands below 2008 levels – often far below. These cuts are attributable, in part, to the failure of the federal … -
State Budget Cuts in the New Fiscal Year Are Unnecessarily Harmful
Updated July 28, 2011
The cumulative effect of four consecutive years of lagging revenues has led to budget-cutting of historic proportions. An analysis of newly enacted state budgets shows that budget cuts will hit education, health care, and other state-funded services harder in the 2012 fiscal year – which started July 1, 2011 – than … -
New Fiscal Year Brings Further Budget Cuts to Most States, Slowing Economic Recovery
June 28, 2011
States have enacted deep cuts in education, health care, and other important public services in their budgets for fiscal year 2012 (which begins July 1 in most states). It is the fourth year in a row of budget-cutting for states, and the 2012 cuts are deeper than in past years. Of the 32 states that have enacted budgets, as … -
Camp-Hatch Proposal Would Harm Long-Term Unemployed and Weaken Recovery
June 13, 2011
Legislation from House Ways and Means Chairman Dave Camp and Senate Finance Committee Ranking Member Orrin Hatch would rescind the federal government’s commitment to provide unemployment insurance (UI) benefits through 2011 to Americans who have been out of work for more than half a year and are still looking for a job. Their bill … -
A Common-Sense Strategy for Fixing State Pension Problems in Tough Economic Times
May 12, 2011
Restoring underfunded state and local workers’ pension programs to full fiscal health is a long-term goal for state policymakers that should be accomplished with moderate, common-sense steps, rather than drastic measures that could imperil states’ economic recoveries. Today’s pension shortfalls were caused in substantial … -
Testimony: Iris Lav on the Transparency and Funding of State and Local Pensions
May 5, 2011
Mr. Chairman, Mr. Lewis, and members of the committee, I appreciate the invitation to appear before you today. I would like to make six related points in my testimony: Most state and local employees receive modest pension benefits, for which both they and their employers contribute annually during their working years. … -
States Can Avert New Revenue Loss And Protect Their Economies by Decoupling From Federal Expensing Provision
Updated April 14, 2011
A recent change in federal tax law regarding business investment in machinery and equipment could be very costly for many states and hurt their economies. Eighteen states are on track to lose $4.6 billion in state corporate and individual income tax revenues during the current and next two state fiscal years: some … -
Podcast: Governors' Budgets Proposals: The Good, the Bad, and the Ugly
April 5, 2011
Erica Williams, Policy Analyst with the Center’s State Fiscal Project discusses how proposed budgets put forth by many governors would greatly harm their states residents.
Duration: 3:17
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Podcast: Radical Medicaid Proposals Could Add Millions to Ranks of Uninsured
March 24, 2011
Edwin Park, Vice President for Health Policy, discusses how Medicaid block grant proposals would harm seniors, children, and people with disabilities, as well as states.
Duration: 4:59
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Governors are Proposing Further Deep Cuts in Services, Likely Harming Their Economies
Updated March 21, 2011
All of the 48 states releasing initial budget proposals for fiscal year 2012 (which begins July 1 in most states) have done so, and for the fourth year in a row, these budgets propose deep cuts in education, health care, and other important public services — in many cases, deeper than previous cuts. [1] These cuts will delay the … -
Proposed Public Employee Pension Reporting Requirements Are Unnecessary
March 15, 2011
In February, Congressmen Devin Nunes and Darrell Issa (both California Republicans) and Paul Ryan (R-Wis) introduced legislation (H.R. 567) to require states and local governments to report their pension liabilities to the federal government using what is known as a “riskless rate” — an interest rate tied to … -
Podcast: Tax Cuts Worsening Wisconsin’s Budget Problems
March 1, 2011
Nick Johnson, Vice President for State Fiscal Policy discusses the budget situation in Wisconsin.
Duration: 4:18
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A Balanced Approach to Closing State Deficits
Updated February 25, 2011
As states head into their fourth year of fiscal crisis, most continue to face severe revenue shortfalls that require closing huge deficits. [1] As they prepare and consider budgets for the upcoming fiscal year, which begins July 1, 2011 in most states, the choices they make about how to close those deficits have serious … -
Press Release: State Unemployment Insurance Systems Need Major Reforms to Avoid Employer Tax Increases, Deep Benefit Cuts for Jobless Workers
February 9, 2011
Issued Jointly With Many states’ systems for financing unemployment insurance (UI) are broken and, without major reforms, will remain broken, requiring years of high federal taxes on employers and threatening UI’s role as a key economic stabilizer during recessions, according to a major new report … -
Testimony: Iris Lav, Senior Advisor, Before the House Oversight Committee Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs
February 9, 2011
Mr. Chairman, Mr. Quigley, and members of the committee, I appreciate the invitation to appear before you today. A spate of recent articles regarding the fiscal situation of states and localities have lumped together their current fiscal problems, stemming largely from the recession, with longer-term issues relating to debt, … -
An Update on State Budget Cuts
Updated February 9, 2011
See the following reports for more up-to-date data: State Budget Cuts in the New Fiscal Year Are Unnecessarily Harmful, July 28, 2011 New School Year Brings Steep Cuts in State Funding for Schools, October 7, 2011 With tax revenue still declining as a result of the recession and budget reserves largely drained, the vast majority of states have … -
Podcast: Troubling Trends in Governors’ Budget Proposals
February 8, 2011
Erica Williams, policy analyst with the Center’s State Fiscal Project, discusses troubling trends in governors’ new budget proposals.
Duration: 4:16
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Rebuilding the Unemployment Insurance System: A Deficit-Neutral Plan That Limits Tax Increases and Maintains Benefits
February 8, 2011
Issued Jointly With The systems for financing unemployment insurance (UI) in many states are broken and, without major reforms, they will remain broken through this decade and beyond, requiring years of high federal taxes on employers and threatening the system’s role as a key economic stabilizer during … -
Why and How States Should Strengthen Their Rainy Day Funds
February 3, 2011
The roller-coaster economy of the last decade has highlighted the importance of state “rainy day funds” — budget reserves designed to respond to unexpected revenue declines or spending increases caused by recessions or other events. Between 2001 and 2004 and again starting in 2007, states … -
Podcast: Misunderstandings About State Debt and Pensions Create Unnecessary Alarm
January 25, 2011
Senior advisor Iris Lav discusses misconceptions concerning bond debt, pensions and other challenges facing states.
Duration: 4:42
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Media Briefing: Misunderstandings Regarding State Debt, Pensions, and Retiree Health Costs Create Unnecessary Alarm
January 20, 2011
Iris Lav discusses misconceptions about state and local bond debt, pension obligations, and retiree health costs that have lead to misguided calls for drastic, immediate measures that are not necessary and could prove harmful.
Duration: 14:49
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Misunderstandings Regarding State Debt, Pensions, and Retiree Health Costs Create Unnecessary Alarm
January 20, 2011
A spate of recent articles regarding the fiscal situation of states and localities have lumped together their current fiscal problems, stemming largely from the recession, with longer-term issues relating to debt, pension obligations, and retiree health costs, to create the mistaken impression that drastic and immediate measures are needed to avoid an imminent fiscal … -
Business Expensing Proposal Would Add to State Fiscal Problems
Updated December 16, 2010
Notwithstanding the overall positive impacts that the tax deal between President Obama and Republican leaders would have for the economy in the near term, its provision to encourage business investment in machinery and equipment would cost states over $11 billion in state corporate and individual income tax revenues during the … -
Federal TANF Funding Shrinking While Need Remains High
December 15, 2010
With unemployment high and millions of families in need, for the first time since 1996 when President Clinton and Congress created the Temporary Assistance for Needy Families (TANF) block grant as part of welfare reform, no additional TANF funds are available from the federal government to help states respond to the large … -
Podcast: The Recovery Act is Boosting the Economy
December 14, 2010
Michael Leachman, Assistant Director of the Center’s State Fiscal Project, discusses the latest information showing that the Recovery Act is creating jobs and boosting the economy.
Duration: 3:53
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Amazon’s Arguments Against Collecting Sales Taxes Do Not Withstand Scrutiny
Revised November 29, 2010
The Internet retailer Amazon.com has offered two primary justifications for opposing efforts of a growing number of states to require the company and other online retailers to charge sales tax. Amazon officials have argued that collecting sales taxes would be administratively burdensome. They have also claimed that the … -
New CBO Report Finds Up to 3.6 Million People Owe Their Jobs to the Recovery Act
Updated November 29, 2010
View the most recent version of this report: New CBO Report Finds Hundreds of Thousands of People Still Owe Their Jobs to the Recovery Act Updated May 29, 2012 A new Congressional Budget Office (CBO) report estimates that the American Recovery and Reinvestment Act (ARRA) increased the number of people employed by between 1.4 million and 3.6 … -
Business Expensing Proposal Would Add to State Fiscal Problems
November 11, 2010
View more recent report with more up-to-date data: Business Expensing Proposal Would Add to State Fiscal Problems Updated December 16, 2010 President Obama’s proposed temporary tax incentive to encourage business investment in machinery and equipment would cost states up to $20 billion instate corporate and individual income tax revenues during … -
House GOP Leaders’ Plan Would Slash Funds for State and Local Services, Slow Economic Recovery
November 11, 2010
A proposal by House Republican leaders to cut non-security discretionary spending by more than 20 percent in fiscal year 2011 could reduce federal funding for programs operated by state and local governments by $32 billion, substantially reducing the ability of those governments to provide crucial services to millions of Americans. (See page … -
Podcast: State Ballot Initiatives Will Affect Public Services
November 2, 2010
Jon Shure, the Deputy Director of the Center’s State Fiscal Project, discusses how in some states people will vote today on ballot initiatives that will significantly affect public services.
Duration: 3:28
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Podcast: States Continue to Feel Recession’s Effects
October 25, 2010
Policy Analyst Phil Oliff discusses how states are still struggling to deal with the steep decline in revenues brought on by the recession.
Duration: 2:51
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Conference: America's Fiscal Future
October 5, 2010
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Cutting State Corporate Income Taxes Is Unlikely to Create Many Jobs
September 14, 2010
Corporate income taxes are important sources of revenue that states use to fund public services, including services essential to long-term economic growth like education, infrastructure, health care, and public safety. Nonetheless, a number of 2010 gubernatorial candidates have made corporate tax cuts key planks of their campaign platforms. … -
To Avoid Looming Tax Increases for Employers and Likely Benefit Cuts for Unemployed Workers, Moratorium on State Interest Payments to Federal UI Trust Fund Needs to Be Extended
Updated September 13, 2010
To avoid tax increases for employers and benefit cuts for unemployed workers, which would damage the still-weak economic recovery, policymakers should extend a moratorium on the interest payments that state unemployment insurance (UI) trust funds must make to the federal government for the funds they borrow to pay … -
Video Clip: CNN Europe cites the Center on State Budget Gap Data
August 31, 2010
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Podcast: State Budget Crisis Continues Despite Surpluses
August 24, 2010
Senior Fellow Liz McNichol discusses why some states have ended their fiscal year with budgets in the black even as the state budget crisis continues.
Duration: 3:35
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Failing to Extend Fiscal Relief to States Will Create New Budget Gaps, Forcing Cuts and Job Loss in at Least 34 States
Revised August 13, 2010
If Congress does not extend the enhanced Medicaid matching funds in last year’s Recovery Act, most states will cut public services or raise taxes for the fiscal year that begins July 1 by even more than they are already planning – laying off tens of thousands more teachers and other public employees, cutting education funding more … -
State-By-State Numbers: Critical Fiscal Relief at Stake In Tuesday’s House Vote
August 6, 2010
States stand to lose significant amounts of fiscal relief if legislation that the Senate approved yesterday, and the House is due to take up next week, fails to become law. The level of losses is shown on a state-by-state basis in the table below. Because of the long and deep recession, states have begun their third consecutive year … -
July 30 Data Release Will Capture Only a Portion of the Jobs Created or Saved by the Recovery Act
July 29, 2010
On July 30, the Recovery Accountability and Transparency Board will post on its website, www.recovery.gov, data on jobs funded by the American Recovery and Reinvestment Act (ARRA). This data release will capture only a portion of the jobs created and saved by the Act, due to ARRA’s limited reporting requirements. According to the … -
Podcast: New Fiscal Year Brings More Tough Times for States
July 13, 2010
Policy Analyst Phil Oliff discusses what the new fiscal year brings for states.
Duration: 2:56
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New Fiscal Year Brings More Grief for State Budgets, Putting Economic Recovery at Risk
June 29, 2010
Dismal state revenue collections caused by the severe recession are setting the stage for a new round of state budget cuts as fiscal year 2011 begins in most states on July 1. The states’ cumulative budget shortfall will likely reach $140 billion in the coming year, the largest shortfall yet in a string of huge annual gaps that date back … -
What States and the Economy Lost When the Senate Jobs Bill Failed
Updated June 24, 2010
The Senate’s failure to pass its version of jobs legislation, which would have extended federal assistance to states, will force the states – which are struggling with an unprecedented drop in revenues due to the recession – to make even deeper spending cuts and raise taxes even … -
Media Briefing: Property Tax Cap Wouldn’t Improve New Jersey Policies
June 8, 2010
Suggestions that Massachusetts’ experience under a property tax cap shows New Jersey could impose a similar cap without harming education and other public services are misleading. Senior advisor Iris Lav discusses why a property tax cap in New Jersey is likely to end up reducing essential … -
Podcast: The Recovery Act is Working
June 8, 2010
The latest information showing that the Recovery Act is creating jobs and the need to extend more aid to states is discussed by Senior Policy Analyst, Michael Leachman.
Duration: 3:29
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Statement: Nicholas Johnson, Director, State Fiscal Project, on NGA and NASBO's “Fiscal Survey of the States”
June 3, 2010
Today’s “Fiscal Survey of States” from the National Governors Association (NGA) and the National Association of State Budget Officers (NASBO) underscores the urgent need for Congress to extend fiscal relief to states in the pending jobs legislation. Without further assistance, … -
New CBO Report Finds Recovery Act has Preserved or Created up to 2.8 Million Jobs
May 26, 2010
View the most recent version of this report: New CBO Report Finds Hundreds of Thousands of People Still Owe Their Jobs to the Recovery Act Updated May 29, 2012 A new Congressional Budget Office (CBO) report estimates that the American Recovery and Reinvestment Act (ARRA) had preserved or created between 1.2 million and 2.8 million jobs as … -
Premature End of Federal Assistance to States Threatens Education Reforms and Jobs
Updated May 25, 2010
Recovery Act assistance to states will largely run out this year, which could not only eliminate hundreds of thousands of jobs and undermine basic education services but also impede education reform efforts. As Education Secretary Duncan recently told Congress, “We are gravely concerned that the kind of state and local budget … -
Budgetary Concerns Should Not Be An Obstacle to Passing the New Jobs Bill
Revised May 20, 2010
Congress is about to take up a jobs bill that will provide a needed boost to the economic recovery and help people still struggling to find work in a difficult labor market. Senate Finance Committee Chairman Max Baucus and House Ways and Means Committee Chairman Sander Levin today released a summary of … -
Podcast: State Budget Cuts Put Education Reforms at Risk
May 4, 2010
Nick Johnson, Director of the Center’s State Fiscal Project, discusses the risk that state budget problems will derail education reform. Duration: 4:58
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Some States Scaling Back Tax Credits for Low-Income Families
Revised May 3, 2010
Facing large budget shortfalls, a small number of states are scaling back tax credits for low-income working families, which not only harms some of the families hardest hit by the recession but also weakens the economy by lowering overall demand. States have other budget-balancing strategies that are better for both vulnerable … -
Budget Cuts or Tax Increases at the State Level
Updated April 28, 2010
The recent, unusually long and deep recession is making it difficult for states to maintain balanced budgets, as nearly all of them are required to do by law. Almost every state has reduced spending and 33 also have raised revenue to bring their budgets into balance. Additional cuts and revenue measures are being proposed for the next fiscal year. … -
Congress Should Act Quickly to Extend UI/COBRA Benefits Through the End of This Year
April 12, 2010
The long-term unemployment rate — the percentage of people in the work force who have been out of work for over half a year and are still looking for a job — reached an unprecedented 4.3 percent of the labor force in March (see the chart). Yet Congress has allowed the Recovery Act measures that provide additional weeks of … -
Podcast: Avoiding Their Share: The Controversy over Amazon and Online Sales Taxes
March 30, 2010
Michael Mazerov, senior fellow with the Center’s State Fiscal Project, discusses how internet retailer Amazon is going to extremes to avoid collecting sales tax from its customers.
Duration: 5:19
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Podcast: States Can’t Stimulate Their Economies By Cutting Taxes
March 23, 2010
The myth that cutting taxes can stimulate a state’s economy is discussed by Senior Advisor, Iris Lav. Duration: 4:02
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Video: Fox Business Interviews Nicholas Johnson on the State Fiscal Crisis
March 11, 2010
Nicholas Johnson weighs in on tax hikes in response to the recession on Fox Business News.
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State Tax Changes in Response to the Recession
March 8, 2010
The national recession has had such a devastating effect on state finances that states took in $87 billion less in tax revenue from October 2008 through September 2009 than they collected in the previous 12 months. This 11 percent decline, the steepest on record, resulted from the impact on tax collections of lost jobs, reduced wages, and … -
Governors’ New Budgets Indicate Loss of Many Jobs if Federal Aid Expires
Updated March 8, 2010
States face continued major budget problems, because of the steepest-ever decline in state revenues and the end of most federal Recovery Act assistance halfway through their coming fiscal year. As a result, governors are proposing a new round of deep budget cuts that would increase unemployment and threaten the fragile economic recovery. Without further federal aid, … -
Recession Threatens State Health Care Programs
March 4, 2010
In considering “jobs legislation” in the weeks ahead, Congress will decide whether to extend the temporary increase in federal support for state Medicaid programs that last year’s economic recovery legislation provided. Failure to do so would lead to deeper state budget cuts that cost substantial numbers of jobs, as well as … -
The Zero-Sum Game: States Cannot Stimulate Their Economies by Cutting Taxes
March 2, 2010
Policymakers in a number of states are considering proposals to cut taxes and institute job-creation tax credits. While state policymakers are understandably eager to do something to improve their economies, such measures generally will not increase economic growth. State balanced-budget requirements prevent states from stimulating their … -
Additional Federal Fiscal Relief Needed to Help States Address Recession’s Impact
Updated March 1, 2010
States face a serious fiscal problem that could force them to institute additional deep budget cuts and tax increases in 2010, weakening the fragile economic recovery and harming vulnerable children, seniors, and people with disabilities, among others. The federal assistance that states received for their Medicaid programs … -
Oregon Voters' Approval of Tax Increase Noteworthy as Federal Tax Debate Opens
February 16, 2010
Oregonians’ decisive vote last month to raise taxes on households making over $250,000 calls into question the conventional wisdom that tax-increase proposals are politically untenable regardless of their merit on economic, budgetary, and equity grounds. This has important implications for Congress, which must decide … -
Statement: Robert Greenstein, Executive Director, on Baucus-Grassley "HIRE" Act
February 11, 2010
The Baucus-Grassley “HIRE” Act recognizes the need for further steps to boost the economy and create jobs beyond what Congress enacted last year in the American Recovery and Reinvestment Act (ARRA). It falls short of what’s needed, however, because it lacks additional fiscal relief for hard-pressed states and provides an inadequate extension of … -
Podcast: The ABCs of State Budgets
February 9, 2010
The ABCs of state budgets, and the problems that many states face today because of the recession are discussed by the Deputy Director of the Center’s State Fiscal Project, Jon Shure.
Duration: 4:13
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January 30 Data Release Will Capture Only a Portion of the Jobs Created or Saved By the Recovery Act
January 29, 2010
On January 30, the Recovery Accountability and Transparency Board will post on its website, www.recovery.gov, data on jobs funded by the American Recovery and Reinvestment Act (ARRA). This data release will capture only a portion of the jobs created and saved by the Act, due to ARRA’s limited reporting requirements. According … -
Press Release: Governors’ 2011 Budgets Propose New Round of Cuts
January 28, 2010
As states begin preparing for the third year of a fiscal crisis brought on by the recession, governors’ new budget proposals contain cuts to core services — like education and health care — and state workforces well beyond those they have already made, according to a new report from the Center on Budget and Policy Priorities. The proposals … -
Policy Points: Recession Still Causing Trouble for States
Updated January 28, 2010
The weak economy continues to cause great fiscal distress among states. New budget gaps have opened up in many states for the current fiscal year (July 1 marked the start of 2010 for most states). The budget gaps for this year and next year combined are estimated to total more than $350 … -
Statement: Nicholas Johnson, State Fiscal Project Director, on the Passage of Revenue Measures in Oregon
January 27, 2010
In approving tax increases on the ballot yesterday, Oregon voters wisely chose a balanced approach to addressing the state’s budget crisis. They rejected the claim that revenue increases would harm the economy and, instead, they acknowledged that relying on program cuts alone would hurt … -
New CBO Report Finds Recovery Act has Preserved or Created up to 1.6 Million Jobs
December 3, 2009
View the most recent version of this report: New CBO Report Finds Hundreds of Thousands of People Still Owe Their Jobs to the Recovery Act Updated May 29, 2012 A new Congressional Budget Office (CBO) report estimates that the American Recovery and Reinvestment Act (ARRA) had preserved or created between 600,000 and 1.6 million jobs as of … -
Video: MSNBC Interviews Stacy Dean on Rising Need for Food Stamps Due to Recession
December 1, 2009
Duration: 4:16
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Recent GAO Report on Recovery Act’s Jobs Impact Widely Misunderstood
Updated December 1, 2009
Many observers have misread a November 19 report from the Government Accountability Office (GAO) examining the government’s claim that the part of this year’s American Recovery and Reinvestment Act (ARRA) consisting of grants, contracts, and loans has created or saved roughly 640,000 jobs to date.[1] Some observers have … -
The Administration’s October 30 Data Release on Jobs Created by the Economic Recovery Law: What it Told Us and What it Didn’t
Revised November 25, 2009
The Obama Administration’s October 30 release of data on jobs created and saved by the American Recovery and Reinvestment Act (ARRA), which the Administration and Congress enacted early this year, captured only a portion of the jobs created and saved due to ARRA’s limited reporting requirements. According to the Government Accountability Office, ARRA’s reporting system … -
Relief for States and Struggling Families Provides Substantial Boost to Employment
November 20, 2009
The economy is in a very deep hole and faces a long climb back to full employment. Policymakers can make that climb easier by extending or bolstering key provisions of the American Recovery and Reinvestment Act (ARRA) enacted at the start of the year — particularly those related to unemployment insurance and state … -
Video: CNN cites CBPP on Potential Job Losses Due to State Budget Cuts
November 12, 2009
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Podcast: State Budget Cuts and Tax Increases Put Fragile Economic Recovery at Risk
November 11, 2009
The risk that, without more federal aid, states efforts to address their budget problems could cost the economy 900,000 jobs is discussed by Bob Greenstein, Mark Zandi, chief economist of economy.com, and Senior Advisor Iris Lav.
Duration: 21:42
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Raising State Income Taxes on High-Income Taxpayers
Revised November 11, 2009
As states face increasingly difficult choices for closing the gap between available resources and the cost of needed programs and services, one potential revenue source can be found at the high end of the income tax spectrum. The personal income tax, a major source of revenue for 41 states, can yield a significant amount of money from small rate increases … -
Correcting Five Myths About the Stimulus Bill
Updated September 23, 2009
Some critics of the economic recovery law (or “stimulus” bill) that President Obama and Congress enacted early this year continue to mischaracterize how it was supposed to work and what it was supposed to do. For instance, some critics complain that, because unemployment has risen in recent months, the law is not working. Others claim … -
Expanding Sales Taxation of Services: Options and Issues
August 10, 2009
Sales of tangible goods dominate most states’ sales tax bases; only a few states impose their sales taxes on a broad array of services. Sales of “non-durable goods” like clothing and light bulbs and “durable goods” like cars and computers generate the vast majority of state sales tax receipts. According to the … -
Press Release: Facing Deficits, More States Considering Taxing Services
August 10, 2009
Broadening the sales tax base to encompass more services, a step that tax experts have long recommended to modernize state tax systems, is receiving renewed attention because of the state fiscal crisis, according to a major new report from the Center on Budget and Policy Priorities. The report provides state-specific information on what … -
Myths and Realities About How States Are Using Economic Recovery Act Funds
July 9, 2009
Two major misconceptions about how state governments are using funds from the economic recovery law that President Obama and Congress enacted early this year are contributing to a broader misunderstanding about whether the law is, in fact, helping the U.S. economy. Evidence that includes a major new report from the Government Accountability Office (GAO) … -
Tax Measures Help Balance State Budgets
Updated July 9, 2009
With the recession continuing to widen the gap between shrinking revenues and residents’ increasing need for services, a growing number of states are adopting a balanced approach to their budgets that includes revenue increases as well as spending cuts. Since January 1, 30 states have raised taxes and another seven states are considering doing … -
Video: CNN cites CBPP on State Budget Cuts
July 5, 2009
