Texas cities and counties already face limits on how much revenue they can generate. Local leaders have warned that further restrictions would mean fewer services like parks and libraries.
State and local financial managers face the impact of federal aid cutbacks, plus new rules and even some opportunities. It’s time to focus on what’s practical and necessary, both near and longer term.
Florida, meanwhile, gains one every two minutes. New data shows how population shifts are reshaping budgets and tax bases nationwide.
Reduced revenues and rising costs leave municipalities tightening their budgets, per a new National League of Cities report.
The state’s projected budget deficit for fiscal year 2026 has increased to $58.3 million. Idaho’s constitution prevents it from running a budget deficit.
City officials won state approval to sell $125 million in short-term bonds to cover payroll for nearly 5,000 workers through the end of the year.
Conservatives backed criminal justice reforms in hopes of driving down corrections costs and state budgets. A lot of violent and repeat offenders would have to be released to achieve real savings.
It’s not yet clear how much financial support states can expect from a reimagined FEMA. A new analysis of past costs sheds light on the gaps they might have to fill.
Short-term interest rates are likely to continue ratcheting down, making it a challenge for state and local financiers to maximize income on investments. But there are a few opportunities here and there.
Federal funding is a bigger share of state budgets than ever. It comes with too many strings and strictures that choke off efficiency and innovation, and it threatens democratic self-governance.
As demand for GLP-1 medications for weight loss surges and drug costs exceed $990 per month, state policymakers wrestle with coverage decisions and affordability concerns.
After reaching a record high in fiscal 2024, state reserve capacity fell to a median of 46.9 days of spending in FY 2025 as revenue slackens and spending demands rise.
When police or other agencies face major lawsuits, figuring out how to fund settlements can be difficult.
In Virginia, lottery income funds about 10 percent of the K-12 budget. Economic fears are leading residents to play less.
Not much for now, with next year’s insurance premiums jumping far more than general inflation and tax revenues. Employers’ only hope to begin stemming these costs long term is a stronger, unified front at the state and national levels. There also could be an important role for public pensions.
States and localities rely on the regularity and reliability of federal data. Disrupting it undermines everything from pensions to budgets and threatens public trust in government.
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