If states want to make good on their obligations, many will have to drastically increase taxes, severely cut services, or default on their debts and lose access to credit. However, it’s only a matter of time before state policymakers, not wanting to face those consequences, seek a federal bailout.
While politicians debate expansive new government programs, even amid a worsening debt situation, fiscally prudent Americans may find some solace in alternative plans put forward to rein in our government’s bloated budget.
Three key findings highlight states losing $283 billion worth of tax revenue over 10 years, their budgets being hampered by Medicaid spending growth, and their unfunded pension debt reaching an all-time high.
When some poor Vermonter asks his legislator, “Can’t you cut something from that budget?” he or she gets this question for an answer: “what should we cut?” The lack of transparency makes it hard to come up with specific, comprehensive, transformative cuts.
It’s nice to have more money in your pocket. And thanks to the 2017 tax cuts, the typical American is now paying less in taxes.
The end of fiscal-year 2018 saw states socking away a record amount in rainy-day funds – nearly $60 billion – with Colorado and Michigan reporting some of the heftiest reserve accounts, according to a new Pew Charitable Trusts study.
States are increasingly lured by the federal government to receive so-called free money, but in the process have become branch offices of Washington — or, even worse, indistinguishable from the federal government itself.
For perhaps the first time in history, the state’s balance sheet shows a negative net worth of $200 million. In other words, our liabilities exceed our assets. By contrast, the fiscal year ending June 30, 2017, showed our net worth was a positive $1.3 billion.
Gov. Phil Scott on Thursday laid out numerous budget priorities for Vermont ranging from a vaping tax and clean water funding to electric vehicles and Act 250 exemptions for developers.
The U.S. Government Accountability Office’s (GAO) year-end review of the fiscal health of states and local governments paints a grim picture for 2019.
But aside from entitlements, McConnell and his colleagues have a critical opportunity to restrain spending right now by preserving the budget caps, which were put in place by the Budget Control Act of 2011.