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.
Now 25,000 members strong, financially secure and long blessed with thoughtful leadership, the Government Finance Officers Association is poised to address the challenges to come for those who manage the public purse.
The coronavirus pandemic is forcing local governments to find new ways to cut costs. It's an opportunity to build effective financial practices into their cultures, not just for now but for the long term.
For small business owners, applying to the Paycheck Protection Program could be the lifeline to get them through the coronavirus pandemic. But doing so is not easy for the businesses or the banks that manage the loans.
The Wisconsin capital is in a hiring freeze, stopping all purchases of nonessential supplies and services, and may have to consider furloughs or using some of the city’s “rainy-day” fund.
Locally focused investors support the innovative entrepreneurial ecosystems that will produce high-paying jobs in the post-pandemic world. Public officials can learn a lot from their angel investors.
California legislators returned to the capitol after nearly two months away to deal with coronavirus legislation and the budget deficit. The lawmakers have until June 15 to pass a balanced budget or go without pay.
If businesses looking to reopen are going to be shielded from coronavirus-related lawsuits by their workers and customers, there should be stringent, OSHA-style regulatory enforcement.
By operating as market actors to preserve existing jobs, states can link entrepreneurs to capital and expand programs that help hard-pressed families maintain their spending and investment.
Buffalo, N.Y., has a $35 million deficit from the coronavirus and might be unable to overcome the loss without federal financial support. Many other cities have the same fiscal concerns. “We are unable to do this alone.”
Alabama Senate president wants to allocate $800 million of the $1.7 billion that the state is receiving for coronavirus aid for broadband expansion. “I think this is something all people of the state would benefit from.”
San Diego officials were notified that the $580 million in coronavirus relief they recently received could not be used to cover revenue shortfalls caused by the pandemic. But there are still ways the money will help.
About 60 percent of Michigan residents have responded to the Census so far, but the state needs an 82 percent response rate to get full funding. Residents have until the extended deadline of Oct. 31 to complete the form.
Already, thousands of state and local government workers have been furloughed or laid off. Falling revenues and soaring demand could lead to budget shortfalls of up to 40 percent, making help from Congress crucial.
Everybody wants to rebuild it. Nobody wants to pay for it. But there are plenty of options for planning and financing infrastructure projects that don't require deficit financing.
The Trump administration fears that more federal fiscal aid would be a disincentive for state political leaders to reopen their economies. But they're as eager as anyone to get people back to work.
In suggesting that it should be allowed, the Senate majority leader is conflating COVID-19 budgetary emergencies with historical public-pension deficits. They have nothing to do with each other.
Like many U.S. cities, Vancouver expects to lose at least $30 million during the coronavirus shutdown, but is also making plans to shoulder even greater loss. “We don’t yet know what, truly, the final impact will be.”
The governors are calling for a quick $500 billion to offset plummeting tax revenues. But we don't know how long a pandemic recession will last or how deep it will be. We should be guided by hard data.
Though Georgia has a large financial reserve, it relies on income and sales taxes to provide the salaries for many of its state workers. Some predict the state could see a $1.27 billion loss in sales tax revenue.
Corporations are also receiving financial aid from the coronavirus stimulus package, but their refunds are much greater than for families. It could end up costing the federal budget $275 billion over the next decade.
California said it secured 200 million masks per month, but the Newsom administration won’t pay until there is assurance that the masks are coming. In total, the state plans to spend $7 billion on coronavirus response.
Colleges and universities face a worse situation than the Great Recession. States are bound to cut their budgets, while every other revenue source — tuition, dorm fees, donations, endowments — are under pressure.
Schenectady, N.Y., is several millions short of completing its Smart City work that was planned for this year. Officials are hesitant to move forward with the plans in the midst of the coronavirus’ financial crisis.
While overall sales are down, grocery sales might have increased, which would be good for the city’s revenue. While officials expect some declines, overall they are optimistic about the strength of the financial reserves.
Many state, local governments must adjust their budgets as the coronavirus pandemic has choked off much of their revenue streams. Budgets in larger communities will likely rebound faster, but smaller ones will feel the impact for months to come.
As Congress considers further financial help for victims of the coronavirus pandemic, the magnitude of the fiscal crisis that governors and their states will have to face is just starting to emerge.
Spending vast amounts on a crash program now won't help those who've lost their livelihoods to the coronavirus pandemic. We need to take the time for sensible planning to do it right.
Ann Arbor’s virtual city council meeting discussed concerns about spending money on large city projects with an uncertain economic future. “I don’t want to see us putting good money on top of a dumpster fire.”
Federal fiscal assistance could avert budget-balancing cutbacks at the state and municipal level as the coronavirus devastates the economy. Here are some of the strategies and policies that are likely to be — or ought to be — considered.
The revenue drop from COVID-19 is barely starting to show up in official figures, but already furloughs and major shortfalls are common in state and local governments around the country. The pain may be sudden, but it could last for years.
Four of Ohio’s cities are dependent on income taxes. With thousands now unemployed, the coronavirus’s financial toll continues to mount. “Who knows how long this is going to last, but the effect will be felt immediately.”
