Taxes
Covering topics such as bonds, cryptocurrency, federal aid and pensions.
Cuts in funding don’t change counties’ obligations to their residents. They will have to figure out how to raise new revenue, cut services or both. But success in navigating this new landscape won’t come from austerity alone.
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.
Iowa has helped prompt other states to adopt flat income tax rates. To bring down property taxes, the state has to address local government spending.
A bill would allow more public employees to shift out of 401(k)-style plans into more traditional pensions, which could help with recruitment. But critics say costs are a reason the state has moved away from such plans for decades.
State and local governments will be forced to return pandemic relief funds if they aren’t properly obligated by the end of December.
St. Louis voters rejected a $60 million proposal for a new soccer stadium, but the city got one anyway. Here’s how it did that with minimal public funding.
Incoming GOP Gov. Mike Kehoe campaigned on a pledge to eliminate personal income taxes. Several bills would cut the income tax to 4 percent while imposing sales taxes on services.
The states have trigger laws to end coverage if the feds end funding for expansion under the Affordable Care Act. Other states may make cuts if funding gets rolled back.
The city’s finances were already in poor shape but suffered a blow last month when voters rejected a $400 million-per-year sales tax hike.
In Connecticut, 40 percent say they’re either struggling or just getting by financially.
’Tis the season: State politicians love to proclaim temporary tax respites, but they rarely achieve their stated objective of boosting economic activity. Poor timing, poor design — or just a bad idea?
Solar farms are being shut off, losing more than twice as much potential power than in 2021. The surplus would be worse if utilities weren’t paying other states to take some of the excess.
After tearing down high-rises and building more townhomes, the city is trying a mixed-used approach that blends towers with other amenities.
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