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 reducing subsidy slots, slashing provider reimbursement rates and raising co-pays for low-income parents amid shrinking federal aid.
State surpluses are up. So too are appetites for more spending and tax cuts. But inflation has reared its ugly head and the possibility of a recession is very real. Governing sorts out this year's financial picture.
If a congressional debt ceiling deadlock persists and capital markets seize up, states and localities will still have to pay their bills. Public financiers need to be ready to adjust their portfolios to establish a liquid cash buffer.
Last year, the state’s top 200 political donors shelled out nearly $16 million to statewide and legislative races while the 206,000 people who spent $250 or less gave a collective $13.5 million in donations.
The state government used more than half a million dollars of its $6.24 billion in COVID relief funds to buy SUVs to transport Gov. Phil Murphy and other officials around the state. Here’s how the rest of the money was spent.
Due to the state Legislature’s rush to fix an oversight in a previously passed property tax reform package, the property tax rollback rate is higher than it should be, which could mean relief for taxpayers and millions less for localities.
Officials in Kansas and Missouri worry that a federal default could severely disrupt a variety of government services that could cause local layoffs, jettison retirement funds, restrict Medicaid access and more.
Despite rising grocery prices, a little more than 1 in 10 Americans can’t get enough to eat, which amounts to around the same share of the country that was experiencing food insecurity before the COVID-19 pandemic.
The bill would impose a new tax on the state’s “extremely wealthy” at rates of 1.5 percent and 1 percent for those worth more than $1 billion and $50 million, respectively. If passed, it could generate $21.6 billion for the state.
The $1.7 trillion spending bill that will fund the federal government through Sept. 30 includes hundreds of payouts for New Jersey municipalities’ projects, the largest of which will build an overpass along County Road 539.
A new federal law will eventually make some data searches and comparisons easier, but implementation will be a challenge. Software vendors will be staking their claims, but public-sector finance associations should take the lead.
The governor’s two-year plan would put the budget over $10 billion for the first time, a $900 million increase over the current cycle’s funds. It includes $58 million for free school meals, $400 million for transportation and more.
Washington’s biggest county has proposed a requirement that retailers in unincorporated areas accept up to $250 in cash for a single transaction and would prohibit marking up prices for cash-paying customers.
CARES. ARPA. IIJA. These bills and more have put billions into the state and local government market. We break down the major federal funding packages and how they’re being put to use.
The state’s comptroller announced an additional $6 billion to the state’s projected budget surplus, sparking discussions about how to spend the cash. Including the surplus and transfers, there will be $188.2 billion in funds.
They will help fund energy-saving and climate projects for businesses and homeowners. Congress’s approval of the Greenhouse Gas Reduction Fund could supercharge green banks across the nation.
Sports betting in the state became legal on Jan. 1 and many hope that the industry will bring in millions in tax revenue for Ohio schools and increased revenue for other businesses. But some are worried about addiction.
The Employer Coalition of Louisiana, composed of Laitram, Edison Chouest Offshore, Excel Group, Grand Isle Shipyard and more, will work to help its customers pay less for the same quality of health-care coverage.
Disinflation and economic deceleration will dominate state and local budgets and investments. Cash is king, at least for a while. Payroll costs will outrace revenues. It’s going to be a year for muddling through.
Inflation punished Wall Street and Main Street, and public financiers who ignored it squandered billions. Congress passed two bills important to states and localities. And pensions took a hit, but taxpayers won’t feel that pain for years.
Despite the high-profile collapse of crypto trading platform FTX, the Legislature’s Work Group on Blockchain Matters has established a master plan to propel the state to the forefront of the $5 billion industry.
When the governor-elect was serving as Montgomery County commissioner, he streamlined the county’s half-billion-dollar retirees pension plan. Some wonder if the state’s retirement plan will get a similar redo.
Approximately 20 percent of households have some amount of medical debt, and they are disproportionately Black and Latino. A few local governments have teamed up with a nonprofit to unburden their residents’ finances.
The Department of Revenue has launched an online system that allows taxpayers to view their state tax obligations and payments. Officials expect the state to save $10 million annually with the new platform.
Health-care systems across the nation are sending inaccessible medical bills and notices to blind Americans, and breaking disability rights laws by doing so. So far, the patients are the ones being punished through lost time and money.
Federal legislation requiring machine-readable reporting has its critics, but it would go a long way toward modernizing how data is collected, used and shared. It also could lower borrowing costs for states and localities.
Inflation is pressuring state and local employers to grant big cost-of-living increases. But they’ll need to keep in mind the prospect of diminishing revenues in coming fiscal years.
The Legislature wants to create a pool of money that will give a minimum of $4,000 to every child born under the state’s Medicaid program. The program would cost about $150 million annually.
The Business Outlook Survey found that 75 percent of respondents believe that the state’s leaders have fallen short in improving affordability for businesses; 82 percent said the state is somewhat unaffordable for companies.
Nearly one-third of state senators sponsored legislation earlier this year to phase out state income tax over the next 10 years, though the bill is unlikely to pass. The state received $10.8 billion from income taxes last year.
The 77 Committee is allowed to accept unlimited funds because it is not bound by the same city ethics rules that the Chicago mayor must abide by. The committee cannot coordinate with Lightfoot or political campaigns.
