Finance
Managing public finance has become a demanding aspect of state and local government, especially as economic health fluctuates and outside forces create revenue instability. Articles on taxes, budgets, pensions and bonds help to bring insight to finance management at the state and local level.
States are expecting flat revenues and increasing costs in this new fiscal year. They’ll face hard choices even if Congress does not cut major aid programs.
Most states have seen their collections drop below 15-year trends. Federal actions may also provide a drag on revenue.
The state has paid out more than $500 million to settle lawsuits during this fiscal year, mostly in foster care cases – a sixfold increase since 2018.
A bill would direct a majority of funds in the state’s tax rebate program to an account that would generate interest for efforts to combat wildfires.
The state’s school funding formula is normally sacrosanct but Gov. Mike Dunleavy made the move due to declining revenue forecasts. The Legislature won’t attempt to override him until next year.
The city faces a $250 million shortfall. It’s hired 4,000 more workers over the past decade and expanded services, but post-pandemic spending patterns have led sales tax collections to flatten.
The latest technology revolution will eventually eliminate some of the public funds’ internal staff. To avoid being AI roadkill, pension systems and key employees need to take the initiative collectively.
Nearly 20 states have created borrowers’ bill of rights and ombudsman offices to help borrowers figure out confusing paperwork and avoid default.
The largest increases are on taxes of tobacco, vaping and sports betting, but there are also various changes to corporate rates and collections.
Washington, D.C., Mayor Muriel Bowser is proposing a growth-oriented budget for the center of a region on the brink of recession.
They must soon decide whether tariffs will push money market rates above or below market expectations — and place their bets. But shrinking tax receipts and federal cost shifting are likely to have a bigger budgetary impact.
A number of states, including Oklahoma, have passed tax cuts that only take effect if future budget numbers are met. That may sound sensible but it hides their true costs.
Twenty GOP governors have endorsed the congressional budget package, praising its sizable tax cuts and funding for the military and border security.
A congressional proposal would put colleges and universities on the hook when students fail to repay loans. Some experts say that would end up hurting the students themselves.
The vast expansion of private school subsidies is costing states billions of dollars.
With so much federal funding going away, states and localities need to identify what’s most important before they decide what to keep. Across-the-board cuts are not the answer.
The city is short by $31 million for the fiscal year ending next month. Tapping reserves will make balancing next year’s budget that much harder.
Borrowing to finance infrastructure is now more expensive. Meanwhile, congressional tax writers are toying with the municipal bond tax exemption, scaring both investors and issuers. State and local debt managers have a lot to think about — and worry about.
It’s no accident that Utah once again leads the nation in job and GDP growth. Free-market reforms in other states are boosting their competitiveness as well.
Work requirements remain on the table but Congress will not cut the matching rate for the Affordable Care Act expansion or impose per capita limits on states.
The House has twice passed bills that would end taxes for individuals who make money on stocks and other investments. It’s trying to reach final agreement on a cut with the state Senate.
Traditional pensions and 401(k)-style government plans have undergone major changes in portfolio structure since 2000, mostly for the better. But recent market gyrations remind us that there are always opportunities for improvement.
Voters in three states enshrined Medicaid expansions in their state constitutions. Those states could be on the hook if Congress cuts program funding significantly.
Salem, Ore., is in budget straits, in part because untaxed state buildings make up 8 percent of the property in the city. Tina Kotek is backing a local property tax increase as lawmakers consider ways to help the city directly.
Republican Spencer Cox said he hopes the president’s gamble on tariffs will pay off but acknowledged they’re causing short-term pain.
Any future income tax increases would require supermajority votes. If the state House approves it, the amendment would go to voters for final approval.
The state Senate passed a bill that falls short of proposals put forward by Gov. Mike Braun, but the Republican signaled he's open to signing it.
Trade wars, federal aid cutbacks and IRS layoffs will all have an impact on revenues, though the shocks may not be as bad as some fear. Still, for most jurisdictions budget and staffing freezes or cuts lie ahead. But for now leaders should resist the temptation to raid rainy day funds.
The state recently became the first since 1980 to vote to eliminate its income tax. This will boost economic growth while removing barriers to work — and could ignite a wave of similar state-led reforms.
The president wants to reward companies that make things in this country and punish those that don’t. This may not be enough to counter the forces that have shrunk manufacturing for decades.
The median balance increased by 7 percent last year, a big comedown from 31 percent growth in 2023. Still, half the states could operate solely on rainy-day accounts for longer periods of time.
