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.
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.
Gov. Gavin Newsom has suggested using the extra money on pension debt, budget reserves and, possibly, another round of stimulus checks. The Legislature has until June 15 to pass the final budget.
Barring unknowable virus mutation scenarios, state and local fiscal managers have the opportunity to navigate trends and crosscurrents already underway to make better decisions. One factor figures into almost everything: inflation.
Three Republican state legislators used taxpayer dollars to fund their trips to Sioux Falls, S.D., for MyPillow CEO Mike Lindell’s three-day “Cyber Symposium” which perpetuated 2020 election fraud conspiracy theories.
While the city has become known for its cryptocurrency advancements, other Florida regions, including Broward and Palm Beach counties, are looking for ways to get involved in cryptocurrency.
The state has two community coalitions as finalists in the “Build Back Better Regional Challenge,” which would spur economic growth and job creation in the Middle Rio Grande Corridor.
While the majority of a utility bill was once composed of energy costs, it now includes other charges, like network expansion, investment in pipes and distribution charges. Even as energy costs fall, bill prices continue to grow.
This year taught us to humbly expect the unexpected, from hundreds of billions in federal “helicopter money” to $35,000 bonuses to lure back retired transit workers. And how is your public pension fund doing on something called ESG?
