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.
Despite widespread damage from a 2023 storm, only eight homeowners have cash in hand, with federal roadblocks delaying relief.
The Federal Communications Commission awarded several Alabama health groups grant money to expand their telemedicine services. “It’s horrendous that this has occurred, but it has put telehealth in the forefront.”
California must grapple with a budget deficit that could amount to more than $54 billion by next July. In the short term, there are several budget areas the state can pull from. But the long-term solution is uncertain.
The CARES Act relief will be spent on things like mobile testing sites and technology upgrades. But it could also help food insecurity and business loans. “We have the flexibility to address what we need to address.”
California is working to offset the $54 billion deficit caused by the coronavirus pandemic through two financial proposals. Neither go directly towards the state budget, but instead hope to jumpstart the state’s economy.
The state is expecting a severe revenue loss as tourists and residents are staying off the roads during the coronavirus pandemic. “Things were not good and COVID is making things worse.”
California was going to purchase $800 million of masks from an Alabama vendor but the delivery was incomplete. This is the state’s second incomplete mask purchase, bringing concern to the purchasing decisions.
After two and a half years of development and less than a year after unveiling a $2.8 billion (US) master plan, the New York-based Google affiliate Sidewalk Labs has cut its losses and put Toronto’s smart-city project in limbo.
Pennsylvania’s unemployment compensation fund is not expected to run out, despite the historic number of unemployed workers, but the state may have to eventually repay billions of dollars, which could increase taxes.
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.
