Finance
Managing public finance has become a demanding aspect of state and local government, especially as economic health fluctuates and outside forces create revenue instability. Articles on taxes, budgets, pensions and bonds help to bring insight to finance management at the state and local level.
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.
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.
With the state facing its worst budget gap in two decades, everything from education and juvenile justice to transportation spending is on the line.
They’ve generated over $100 billion in investments in thousands of struggling communities. We have the opportunity to extend and expand the program — and to make it permanent.
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.
State and local governments will be forced to return pandemic relief funds if they aren’t properly obligated by the end of December.
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.
There’s a lot of talk in Harrisburg about reducing regulations, but much of the economic development effort still focuses on tax credits. Four different programs meant to draw businesses have little to no participants.
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.
’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?
Fitch Ratings issued a report comparing the pension debt in each state to personal income. Connecticut had the highest ratio, at 23 percent, while Tennessee was the best at 1 percent.
Only $599 million of the record $1.3 billion homelessness budget last year was actually spent. City Controller Kenneth Mejia blamed “a sluggish, inefficient approach” for the underspending.
His second presidency could recolor the landscape for federal spending, with ramifications for states, local governments, schools and public pensions. Governors and mayors will need to try to discern where the political wind is blowing — and what to watch out for.
Weeks after hurricanes Milton and Helene, businesses across the state are still feeling the financial impacts of the disasters. As of Nov. 1, storm damage had forced about 2,300 people across two counties out of work temporarily.
The five-year budget outlook is poorer than the one the state faced in the Great Recession and, without any changes, Maryland will only be able to cover 84 percent of planned spending through the 2030 fiscal year.
Like some of its Midwestern and Northwestern neighbors, it put the program on a solid fiscal foundation. California and New York show the consequences of failing.
After a decade of increasing popularity among endowment funds and pensions, its use in investment decisions is coming under increasing political attack. Financial analysts — and perhaps AI — may be able to point the way to a safer middle ground.
Vote NO on Prop One, a shadow group registered as a ballot issue committee against New York state’s Proposition 1, has spent nearly $5 million on misinformation ads for radio, television and streaming services.
The total damage in Western North Carolina is estimated at $53 billion; Gov. Roy Cooper has proposed a small fraction from state funds for costs that won’t be covered by the federal government or private insurance.
The proposed plan would lower the top individual and corporate tax rates to establish a flat tax rate, raise the standard dedication for individuals and eliminate the corporate franchise tax.
Given tax-exempt financing and other advantages, continued municipal ownership would seem the way to go. But other pressing public needs can make cashing out these valuable assets seem attractive. A new wave of privatization efforts will give localities a lot to think about.
As city leaders try to reduce carbon emissions and conserve water amid a 20-year drought, a proposed tax break for a new, water-intensive data center is drawing scrutiny.
The initiative commonly known as the Oregon Rebate would increase the minimum tax on large businesses by 3 percent and send the cash to all residents, guaranteeing them a minimum income.
In the summer of 2022 the state reduced the filing fee for new LLCs to just $1, triggering a surge in fraud and registration delinquencies. Now the state must deal with the fallout, including the possibility that current business and job numbers are not reliable because of it.
Wayne County, Mich., nearly filed for bankruptcy in 2014. It just posted its tenth budget surplus in a row.
They’ve mostly benefited real-estate developers. Here’s how to redeploy these tax incentives to grow new businesses and boost employment while leveraging state and local expertise and attracting a broader investor base.
Too many contracts go to larger, more-established companies. But it’s younger, smaller businesses that often are better at leveraging new technologies and efficiencies. We need to avoid “vendor lock-in.”
As a recent study documents, federal fiscal stimulus created a budget windfall for states. Most cut taxes, and some now must scramble to make up for shortfalls. Congress is likely to impose tighter restrictions on future countercyclical aid, so it’s a time for all levels of government to get their acts together.
