Taxes
Covering topics such as bonds, cryptocurrency, federal aid and pensions.
Salem, Ore., is in budget straits, in part because untaxed state buildings make up 8 percent of the property in the city. Tina Kotek is backing a local property tax increase as lawmakers consider ways to help the city directly.
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.”
The administration rescinded its order for a spending review due to blowback. Republicans had not joined the chorus of critics, even though red states are heavily dependent on federal grants.
The legislation would block foreclosures and allow homeowners who’ve suffered financially due to the L.A. fires to freeze payments without penalty. Several major lenders have already reached agreement with Gov. Gavin Newsom to provide voluntary relief.
The White House ordered a pause on all federal grants, partly intending to target diversity, equity and inclusion and other "woke" programs. A third of states' budgets comes from federal grants.
It could bring states a lot of revenue. But voters don’t like it, even though few of them would have to pay.
Like other states, Michigan is seeing declining revenues due to electric vehicles. It’s pulled a pilot program to try out a fee system based on miles traveled due to lack of funding, which critics call short-sighted.
The plan would reduce the state’s $7 billion general fund by $1.1 billion over 10 years. Losses would be partially offset by increases in sales and gas taxes.
Seven employees were fired after accessing tens of thousands of Medicaid and food stamp accounts and stealing at least $270,000.
As 2024 came to a close, the White House and Congress approved big giveaways to two subsets of state and local government employees and pensioners. There could be political backlash, and for equity’s sake there might be a case for some corrective tax policies.
Grant programs too often send money to areas that already have resources. Federal agencies should work with state and local leaders to identify the place-specific needs of regional economies and develop custom projects.
States face a tricky year, with their own revenues stalling and federal aid running low.
Recent laws to improve pension financing should save states tens of billions of dollars over the long term.
Governors, mayors and finance officers are treading water, awaiting the outcome and impact of a new Washington regime’s vows to slash federal spending and taxes. Meanwhile, state and municipal budgeters and debt managers will need to make intelligent guesses and pay more attention to their rainy-day funds.
When Democrat Jay Inslee took office in 2013, the state’s two-year budget was $38.4 billion. Now, as he prepares to leave, he’s released a $78.8 billion spending plan.
The taming of inflation was the main financial story. Bond and capital markets were cooperative, even if voters upset about property taxes were not. Governors, mayors, finance directors and pension pros may soon look back wistfully at 2024’s business-as-usual atmosphere.
Most Read
