Spotlight on the States
Last week, our "Spotlight on the States" blog post highlighted structural challenges for the states, one of them being an eroding sales tax base. The inability of states to collect sales taxes on online sales, which we also have previously discussed, is one factor in that erosion (in addition to the growth of service consumption). In Quill Corp. v.
The State Budget Crisis Task Force -- a group of budget experts including the likes of former CBO and OMB director Alice Rivlin, former Federal Reserve chairman Paul Volcker, and former Treasury secretary George Shultz -- released a report yesterday detailing the six biggest threats facing states in terms of long-term fiscal sustainability. They looked at six of the more heavily populated states -- California, Illinois, New Jersey, New York, Texas, and Virginia -- but their prognosis is easily applicable to other states.
Last year, our Spotlight on the States series highlighted many contentious battles to eliminate budget shortfalls in state capitals across the country. Of course, the states have been in budget-cutting mode for a few years now as the recession has led to steep drops in state revenue.
Continuing their efforts to close budget gaps, states across the country have looked to public pension reform as part of a possible solution. Among the states considering such reforms are Illinois, California and New York.
Breaking from traditional posts in our Spotlight on the States series, this blog focuses not on one state's budget, but on an issue that directly affects nearly every state's budget: the collection of sales tax from internet sources. For the past ten years, internet sales have skyrocketed as more and more shoppers take their shopping to the web.
With federal budget news in a bit of a holding pattern until next month, we return to our Spotlight on the States blog series with a discussion of New Jersey’s FY 2012 budget battle.
Pew's Center on the States has an interesting new report with a different angle on how breaking through the debt ceiling and defaulting would affect our economy. Most accounts of the disastrous effects of a technical default focus on interest rates and on the private sector; however Pew's report focuses on the potential effects on state and local budgets and their ability to borrow.
Update 7/14: Gov. Dayton and the legislature have reached an agreement to fund the government through the biennium.
Taking a break from all the recent developments in the budget and fiscal policy world, we take a quick turn to our Spotlight on the States blog series to see what budget battles in Ohio have been focusing on, and the possible solutions.
The next state we turn to in our Spotlight on the States series is Connecticut – a small state that’s had some pretty big budget problems.