State lawmakers pursue homeowner tax cuts, but counties, schools and towns face shortfalls.
The median balance increased by 7 percent last year, a big comedown from 31 percent growth in 2023. Still, half the states could operate solely on rainy-day accounts for longer periods of time.
Making tips tax-free would not only lower revenues but distort the tax code.
With the state facing a shortfall, the move is expected to save $20 million.
Much has been said about the health consequences of severe Medicaid cuts. A new analysis from the Commonwealth Fund considers the jobs and revenue that states could lose.
The state faces a severe shortfall, but a proposed package would raise or shift $1 billion in taxes to secure funding for various projects.
If Congress reduces matching funds for the Medicaid expansion under the Affordable Care Act, many states would suddenly face $2 billion shortfalls apiece.
A new forecast anticipates the state seeing nearly $1 billion less in revenue than projected as recently as November, bringing the expected four-year shortfall to $15 billion.
Trust in local government has declined in recent years. Liberty Lake, Wash., has found ways to assure residents their voices will be heard.
The city had to reshuffle more than $50 million to address the unexpected shortfall, driven by overtime costs due to staffing shortages. The Fire Department alone needed an injection of $33 million to pay for unexpected overtime.
Austin, Dallas, Houston and others face shortfalls. An analysis of the nation’s 75 biggest cities found that 54 are short of funds with a collective $300 billion in debt.
In his final budget proposal, Democrat Phil Murphy calls for replacing old and unreliable buses and rail cars.
Many states, particularly Republican-led ones, are feeling pressure to align their legislative priorities with the presidential administration. But states are facing new financial constraints after years of revenue growth.
Crystal River, Minn., is a freshly incorporated city that lacks money for services and infrastructure. A lobbyist would help secure state funds, but some local officials call the idea a “racket.”
Longtime conservative activist Carl DeMaio won an Assembly seat last year, arguing the GOP must be more aggressive against Democratic policies. Some Republicans call him a self-promoter who can’t be trusted.
A bill would set caps on infrastructure funds, allowing localities to make up the difference by charging fees on deliveries. Local officials say the plan will leave them short.
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