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.
Colorado’s revenue dropped by $1.2 billion due to tax code changes in the One Big Beautiful Bill Act. Lawmakers altered some tax credits but left spending cuts up to Gov. Jared Polis.
Across the nation, the poverty rate among adults 65 and older rose to 10.7 percent last year, the only age group that saw an increase. In Los Angeles County, homelessness in adults 55 and older has risen 20 percent since 2017.
Residents will vote on whether the state general reserve fund should keep 7 percent of the previous year’s state-collected tax dollars and whether the capital reserve should retain 3 percent of the year prior’s revenues.
In its annual survey of the fiscal condition of U.S. cities, the National League of Cities finds cause for both hope and concern. Federal funds have improved municipal fiscal health, but inflation and recession fears are on the horizon.
Disadvantaged communities have suffered disproportionately from underinvestment in clean and affordable water. But a historic increase in federal water infrastructure funding can change the equation if managed correctly.
Despite the recent announcement that Social Security benefits will increase next year, the federal program is likely to become insolvent by 2035. Congress has done little so far, but some candidates hope to change that.
The Established Program to Stimulate Competitive Research is aimed at states and territories that previously received little funding from the National Science Foundation. The hope is to boost scientific research across the nation.
At least eight states have bills that would modify existing or establish new programs to tax drivers of electric vehicles based on the number of miles they drive to supplement the decreasing revenue from the gas tax.
Pennsylvania and other states argue that Delaware has been wrongly pulling money through unclaimed property seizures, which, in recent years, have funded 10 percent of the state’s budget. The case could cost Delaware $400 million.
With inflation taking root, state and local treasurers were warned of the risks of blindly investing their cash longer term for minuscule returns. It was advice that many ignored, leaving their portfolios squandering billions.
In the first year that the state legalized online gambling and sports betting, the state earned $41 million in tax revenue, which is much higher than expectations but much less than the profits of two of the state’s casinos.
If passed, a bill would divest the state’s pension fund from the 200 largest publicly traded fossil fuel companies no more than two years from the time the bill is enacted. The pension fund is valued at $92.9 billion.
As costs rise, the economy slows and federal grants decline, Tom Kozlik warns that cities, including Philadelphia, may have to adjust the way they manage their finances to prepare for tough times ahead.
Buffered by relief programs, like stimulus checks, expanded SNAP benefits and Child Tax Credit payments, the state’s supplemental poverty rate decreased to 10.5 percent in 2019-2021.
More than a dozen states allow homeowners to lose not only their houses but also years of mortgage payments if they fail to pay their property taxes. Some lawmakers are hoping to change the rules.
Residents will receive nearly $3 billion in excess revenues next month, with the bottom 20 percent of earners receiving an average credit of just $9; the average rebate amount is about $530.
At least 32 charities that were not registered with the secretary of state’s office received more than $11 million through earmarks over the last two years. Some argue that this highlights a need for earmark reform.
For approximately 3,000 yellow taxi medallion owners, the city will clear thousands of dollars of debt in an effort to revitalize the industry that was devastated by COVID-19. Those eligible have until Friday to enroll in the loan reduction program.
New Jersey lawmakers are fast-tracking a bill that would reform the state’s pension law to tighten criteria under which former government workers convicted of on-the-job misconduct should lose some or all of their pension.
Political groups have spent thousands of dollars to sway voters in their favor for measures 112, 113 and 114. One committee spent more than $1.5 million to get Measure 113 on the ballot and another $24,000 since.
A short-term funding bill from Congress could allot as much as $1 billion to help low-income Americans offset home heating assistance amid rising energy costs. If approved, Connecticut could receive $20 million.
Economic uncertainty, caused by high inflation rates, the COVID-19 pandemic and international crises, at the state and national level has prompted Gavin Newsom to reject several bills in an effort to maintain a cushioned budget.
The president’s forgiveness of student loans aroused plenty of controversy. State and local governments can help craft a more sustainable federal plan that could help to relieve their own workforce shortages and staffing costs.
The State Employees’ Retirement System has sunk to $34.5 billion, a quarterly decrease of 8.5 percent. The system funds more than 70,000 older state and public school retirees with pension payments that haven’t changed since 2004.
A recent poll found that for 69 percent of likely voters, cost of living, jobs and the economy combined to rank as the highest-priority issue for the upcoming election, with 87 percent ranking cost of living and the economy as the two most important.
A White House fact sheet estimates that 408,700 borrowers across the state are eligible for some form of federal student loan debt forgiveness, 248,900 of whom could get $20,000 wiped. Iowans owe a total of $13.3 billion in student debt.
Commissioner of Administration Jay Dardenne feels confident that the state will, once again, have money remaining from the current fiscal year for use in the next one. But if the state is required to pay for storm damage cleanup costs, that number could change.
The money will be used to build upon the state’s existing base of electric vehicle chargers over the next two years. The Department of Energy listed nearly 1,300 public chargers across the state at 465 designated stations.
The most expensive item on the November ballot will be a general obligation bond measure that could end up being the largest revenue stream in the city’s history, increasing property taxes by $40.91 per every $100,000 in value.
The MBTA is facing a budget deficit that could swell once federal relief funds run out. The money has already been used to help stabilize the agency’s budget. Without the aid, the 2022 budget would have had a $132 million deficit.
A legislative audit of the state’s $290 million program found that the distribution rate of the funds was slower than predicted and a random sampling of grants found that 39 percent had at least one error while 13 percent were unallowable.
