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.
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.
Gov. Gavin Newsom and Democratic lawmakers have made several proposals on how to help alleviate the financial pressures of increasing gas prices and inflation costs, but it’s unclear which plan will be the final version.
Revenues are robust enough to allow for increased spending, and tax cuts on top of it. But current flush conditions might not last long enough to turn permanent cuts into a good idea.
Kansas is just the latest: States keep throwing money at corporations, a practice that does little to improve their economies. What if they all decided to end this wasteful and ruinous arms race?
The stimulus program that followed the Great Recession was a model for tracking projects and spending down to the ZIP code level. We don’t have that with the American Rescue Plan, dooming us to fight about what matters most.
U.S. Senate Majority Leader Chuck Schumer and Sen. Kirsten Gillibrand announced the funding will be used to help city residents bounce back in their careers and education after being hit hard by COVID-19.
Many want to sanction Putin and Co. at every turn, but it’s a mistake to move too quickly. Pension funds actually don’t hold that much in Russian assets, and they're sitting ducks for crafty, amoral traders.
Obscure court fees are disproportionately issued to low-income residents of color, who often cannot afford to pay the fines; 86 percent reported that paying for the ticket would impact their ability to pay for food.
A recent study found that in 2019, women earned 80.8 percent of what a man earned in a similar position, though some jobs, like financial managers, judges and chief executives, make well below that mark.
A proposed bill amendment would have prohibited the investment of state retirement assets in any company that does business with the Russian government, but Republican lawmakers ruled out the change on a technicality.
The state’s investment in companies in Russia and government debt issued by Russia amounts to $218 million, less than half of 1 percent of the state’s total retirement funds, and has been in decline since 2014.
Legalized online wagering is already hauling in substantial state revenue, but additional taxation will need a uniform, multistate approach that might also take in “gamified” financial trading. And it’s time to do a better accounting of the growing social costs.
Thousands of low-income families are only eligible for part of their child support because they also receive public assistance. A new plan would improve the system, but still wouldn’t allow families to have full access to their funds.
Companies and job seekers have expanded options if workers don’t have to live where they work. But for city governments, this can mean lost tax revenue.
To qualify, seniors must apply to their town annually to prove they have incomes low enough to qualify – a maximum salary of $37,400. But, for many, the requirements and processes are convoluted and difficult to meet.
Two proposed bills would open the process for local governments to tax residents in ways that aren’t currently allowed. For now, Kentucky’s cities and counties can only impose property taxes, occupational taxes and fees.
The emergency response agency argues that the city improperly rolled back public health orders while the city thinks that the shelters it built for homeless populations should be covered by federal disaster aid.
The governor’s budget and a bill by a Democratic lawmaker would stop the state from charging more than 500,000 Californians a monthly premium for their Medi-Cal health coverage.
The state’s $40 million fund will likely be spent ahead of the Feb. 28 deadline due to the high number of applications. In fact, if all 13,900 applications are approved, the funds will be encumbered.
State leaders have yet to apply for millions in funding for mental health services made available through the American Rescue Plan Act. 2020 saw a 37 percent increase in statewide opioid overdoses.
To combat inflation, the central bank will be raising interest rates and shedding a big chunk of its $8 trillion bond portfolio. Its actions will ripple through the world of state and local finance.
The Bay Area regional transit system is desperately trying to recover from the plummeting ridership numbers caused by the coronavirus pandemic. Officials expect the system’s budget deficit will be $1.2 billion by 2032.
Residents had to fund the legal defense against the civil lawsuit that was filed against Auditor Roger Reynolds for bribery and corruption. Taxpayers will not be responsible for the criminal legal fees.
A coalition of community-based organizations will select 330 families to receive a guaranteed basic income of $500 a month for a year. Applicants must be a member of an undocumented or mixed immigration status family.
The California county’s budget office reported that the jail requires an extra $1.5 million to cover the increased costs of food – a 26 percent rise in budget allocation – despite a reduction in overall jail population.
Progressives dislike its regressivity, but states and localities depend heavily on the revenue. Some reformers’ eyes are on taxing luxuries and digital intangibles — NFTs, anyone? — but that presents its own problems.
Last year, pension plans enjoyed big returns in the market, bringing their balances back to levels not seen since the Great Recession. They are still $1 trillion short, however.
Governments are desperate to recoup lost revenue as people cut the cable cord.
Many years ago, public financiers woke up to the problem of funding “other post-retirement benefits,” but then some of them went back to sleep. Younger public employees should demand an actuarial wake-up call.
Delaware County’s outdated emergency radio system is susceptible to hackings, which prevent timely police response and deteriorate public trust. But updating the system could cost as much as $50 million.
The bipartisan Working Families Caucus will bolster the finances of lower-income households through legislation addressing issues such as paid sick and family leave, tax credits and an increased minimum wage.
