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Critical Issues in State-local Fiscal Policy

Critical Issues in State-local Fiscal Policy PDF Author: Scott R. Mackey
Publisher: National Conference of State Legislatures
ISBN: 9781555165598
Category : Decentralization in government
Languages : en
Pages : 0

Book Description
The United States is undergoing a transition as state governments reclaim responsibilities that the federal government had assumed earlier in the century. Sorting out which governmental body should take charge of various services is the subject of this report. It focuses on two critical issues in the relationship between state and local governments: which level of government should finance services, and which level of government should deliver those services. Delegating governmental responsibilities presumes that a more fundamental question has been answered--whether government should provide the service at all--has been considered and answered affirmatively. The following five principles constitute a framework for sorting out responsibilities between state and local governments: (1) provide the clearest possible separation of responsibility between state and local governments; (2) assign program responsibility to the lowest possible level of government unless there is an important reason to do otherwise; (3) consider the fiscal effects of state mandates on local governments; (4) assume state responsibility for programs where uniformity or statewide benefits will result; and (5) provide state financial assistance to local governments that have the lowest capacity to raise their own revenue. Case studies are included to illustrate each principle. Principle 1 covers "The Special Case of Education" (p.5). (RJM)

Critical Issues in State-local Fiscal Policy

Critical Issues in State-local Fiscal Policy PDF Author: Scott R. Mackey
Publisher: National Conference of State Legislatures
ISBN: 9781555165598
Category : Decentralization in government
Languages : en
Pages : 0

Book Description
The United States is undergoing a transition as state governments reclaim responsibilities that the federal government had assumed earlier in the century. Sorting out which governmental body should take charge of various services is the subject of this report. It focuses on two critical issues in the relationship between state and local governments: which level of government should finance services, and which level of government should deliver those services. Delegating governmental responsibilities presumes that a more fundamental question has been answered--whether government should provide the service at all--has been considered and answered affirmatively. The following five principles constitute a framework for sorting out responsibilities between state and local governments: (1) provide the clearest possible separation of responsibility between state and local governments; (2) assign program responsibility to the lowest possible level of government unless there is an important reason to do otherwise; (3) consider the fiscal effects of state mandates on local governments; (4) assume state responsibility for programs where uniformity or statewide benefits will result; and (5) provide state financial assistance to local governments that have the lowest capacity to raise their own revenue. Case studies are included to illustrate each principle. Principle 1 covers "The Special Case of Education" (p.5). (RJM)

Critical Issues in State-local Fiscal Policy

Critical Issues in State-local Fiscal Policy PDF Author: Scott R. Mackey
Publisher: National Conference of State
ISBN: 9781555165628
Category : Political Science
Languages : en
Pages : 33

Book Description


State-local Government Spending, Macroeconomic Fiscal Policy, and the Business Cycle

State-local Government Spending, Macroeconomic Fiscal Policy, and the Business Cycle PDF Author: Amanda Page-Hoongrajok
Publisher:
ISBN:
Category :
Languages : en
Pages :

Book Description
This dissertation investigates state and local government budget behavior over the business cycle with the aim of improving the design and implementation of fiscal policy. It examines how the various components of state-local government budgets have behaved historically and seeks to understand how on-the-ground, practical, and political issues impact state and local government's ability to engage in countercyclical spending. The first chapter of this dissertation motivates the need to account for state and local government budgets in macroeconomic fiscal policy. It shows that the contemporary macroeconomic fiscal policy literature overlooks the role of state and local government budgets. I argue that it is critical to fill this gap because of the significant impact state and local government budgets can have on overall fiscal policy. Chapter 2 investigates the behavior of state and local government budgets over business cycles from 1954 to 2015. It classifies each component of state and local government budgets as pro-cyclical, countercyclical, or non-cyclical. This analysis helps us see clearly which components of state-local government budgets have historically supported countercyclical fiscal policy and which have hindered it. Chapter 3 examines the effectiveness of state-local government capital spending as a countercyclical tool. Capital spending has the most potential for countercyclical purposes. This chapter identifies institutional and on-the-ground barriers to using capital spending for countercyclical purposes. Chapter 4 analyzes the role of state and local government spending in the most recent economic recovery from 2010 to 2015. State and local government spending has historically contributed to federal government recovery efforts. However, in the 2010 recovery, state and local government spending became a drag. Analyzing the state-local government slowdown during the 2010 recovery can help us identify the key factors that turned state-local government spending from a supportive source to a barrier. Chapter 5 develops policy proposals for state and local government countercyclical spending taking into account all the lessons from the previous chapters. I argue that the most promising areas for policy change are: 1) expanding federal government support; 2) reforming rainy day funds; 3) utilizing the capital budget; 4) loosening financial constraints; and 5) addressing political constraints.

State and Local Fiscal Policy

State and Local Fiscal Policy PDF Author: Sally Wallace
Publisher: Edward Elgar Publishing
ISBN: 9781848444249
Category : Political Science
Languages : en
Pages : 278

Book Description
The last few decades have presented a new set of challenges and opportunities for public finances. Demographic trends have put substantial pressure on non-discretionary public expenditures such as health care, while legal challenges have put pressure on education financing. The author illustrates how these national trends have also impacted state and local finances - some directly, others indirectly. The economic downturn further constrains state and local governments' options for dealing with national trends. Constituents' sentiment toward the size of government further exacerbates fiscal choices for state and local governments.In this broad and illuminating volume, experts on public finance discuss innovations in state and local tax policy implemented or considered over the course of the last three decades. The authors provide original work that analyzes whether state and local governments have 'gone outside the box' to deal with the strains of current public finances or have gotten along by adhering to the status quo. Well-known scholars in the area of state and local public finance consider actual practices and analyze potential policy changes for the future.Public policy and public finance scholars and students as well as policy makers will find much of interest in this impressive and original collection.

The Fiscal Crisis of the States

The Fiscal Crisis of the States PDF Author: Steven David Gold
Publisher: Georgetown University Press
ISBN: 9780878405756
Category : Business & Economics
Languages : en
Pages : 420

Book Description
As the federal government has cut back its support for domestic services, state governments increasingly have been forced to assume a leadership position. In this book, prominent experts describe and analyze how state governments in the 1990s have coped with fiscal stress through changes in tax and spending policies, as well as through attempts to "reinvent government" by abandoning long-established policies. In an era when state budgets verge on the brink of deficit, state governments face the difficult task of reconciling the public's wish for low taxes with its desire for increased services--better schools, improved health systems, more prisons. This volume provides both a comparative overview of the fifty states as they try to meet conflicting needs and incisive case studies of six states with a reputation for being national leaders--California, Connecticut, Florida, Massachusetts, Michigan, and Minnesota. It explores how much substance there is to claims that states were successful in developing innovative policies. The Fiscal Crisis of the States draws upon research to analyze what is really happening in the state capitols. Boiling down the diverse experiences of various states into a number of important lessons, this book will be a valuable resource for academics, policymakers, and public administrators, as well as the general reader, to understand the reality of state fiscal policies.

The Fiscal Condition of State and Local Government

The Fiscal Condition of State and Local Government PDF Author: United States. Congress. House. Committee on the Budget
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 186

Book Description


Tools for State and Local Fiscal Management

Tools for State and Local Fiscal Management PDF Author: Hathaway, Alex
Publisher: Edward Elgar Publishing
ISBN: 1800886411
Category : Business & Economics
Languages : en
Pages : 384

Book Description
Governments have always endured economic woes, but the increasing severity of such challenges, from the Great Recession starting in 2008 to the unprecedented impact of the COVID-19 pandemic, highlights the need for better-developed fiscal analysis capacity in governments of all sizes using the most practical—yet robust—techniques available. This volume presents an array of real-world analytical approaches in a variety of service areas at the core of state and local government.

Intergovernmental Issues

Intergovernmental Issues PDF Author: United States. Government Accountability Office
Publisher:
ISBN:
Category : Budget
Languages : en
Pages : 38

Book Description
State and local governments work together with the federal government to deliver a broad range of public services. GAO’s prior work has shown that the state and local government sector will likely face fiscal pressures during the next 50 years due to a gap between spending and revenues. The fiscal sustainability of the state and local government sector is essential to effectively implement intergovernmental programs. GAO was asked to review recent trends in state and local government expenditures and revenues, fiscal pressures for state and local governments with intergovernmental implications, and the implications of federal policy for these pressures. This report (1) examines trends in state and local government expenditures and revenues during the past two decades; and (2) synthesizes expert views regarding the effects of federal policy on state and local government fiscal conditions.

Economic Growth and Fiscal Planning in New York

Economic Growth and Fiscal Planning in New York PDF Author: William Duncombe
Publisher: Routledge
ISBN: 1351318233
Category : Business & Economics
Languages : en
Pages : 335

Book Description
In an era of federal deficits and struggling municipalities, states have emerged as the most significant governmental actors. But state governments face the major challenge of fiscal planning in the midst of economic change. Roy Bahl and William Duncombe tackle this challenge head-on. Using New York as a case study, they identify looming dangers for state revenue and expenditure planning.Bahl and Duncombe begin with the premise that one cannot separate an evaluation of fiscal performance from an evaluation of economic performance. Accordingly, they describe and analyze the patterns of population, employment, and personal income growth. Following this is a study of state and local government finances in New York since 1970 and a recounting of the fiscal adjustments that were taken in the face of slower and then faster growth in the economy.The authors conclude that based on current conditions, the state and its local governments are in for fiscal belt-tightening. They note that the state should take a comprehensive view in planning the development and retrenchment of its government sector. The book is thought-provoking, exhaustively researched, and sensibly written. Its lessons are applicable everywhere and should be read by all those seeking a route through the tangled thicket of government policy for economic growth.

A Decade of Devolution

A Decade of Devolution PDF Author: E. Blaine Liner
Publisher:
ISBN:
Category : Political Science
Languages : en
Pages : 288

Book Description
This volume describes the significant changes to the federal system of government and offers an analytical framework for evaluating them. The contributors discuss the fiscal and administrative impact of Reagan Administration policies on intergovernmental relations; changes in state-local fiscal relations; and the increasing role of state government in promoting local economic development. The volume includes two case studies on Illinois and Arizona, illustrating the politics of federalism during the last decade. ISBN 0-87766-463-3 (pbk.): $22.50; ISBN 0-87766-464-1: $37.50.