Why Tighter Budgets Might Be Better for States in the Long Run ...

Oct 3, 2024 · The new Florida budget also allocates $1.5 billion toward tax relief and uses $6.3 billion to pay down outstanding debt, bringing state debt to a 25-year low. Meanwhile, the …

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Why Tighter Budgets Might Be Better For States In The Long Run ...

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Oct 3, 2024 · The new Florida budget also allocates $1.5 billion toward tax relief and uses $6.3 billion to pay down outstanding debt, bringing state debt to a 25-year low. Meanwhile, the …

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How States Can Manage Midyear Budget Gaps

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Mar 3, 2022 · This was just one example of the state’s chronic difficulty in maintaining a balanced budget throughout the year. 1 Just a few months later, the state faced a new $900 million …

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Should Congress Provide More Aid To States? - American …

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States have received billions in federal aid via the $2 trillion Cares Act, and the Federal Reserve authorized up to $500 billion in loans to state and local governments via the Municipal Liquidity …

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FAQs about Why Tighter Budgets Might Be Better for States in the Long Run ... Coupon?

Will state budgets be affordable over the long term?

As the report notes, “going forward, state leaders must be able to assess whether their decisions will be affordable over the long term or will jeopardize their ability to solve state problems or even sustain programs and services in the future. Unfortunately, the nature of state budget processes discourages such long-term thinking.” ...

Are state governments working with less room in their budgets?

Many state governments in the U.S. are working with less room in their budgets. The budget pressures come as a historic round of federal economic stimulus comes to a close. The federal government put over $800 billion to help state governments navigate the pandemic. "Virtually every state made a tax cut. ...

Are midyear budget shortfalls a risk for Louisiana's government?

As Louisiana’s experience suggests, midyear budget shortfalls are an ever-present risk for state governments. As Figure 1 shows, states are regularly forced to make midyear budget cuts. ...

Why do states have a budget gap?

As Figure 1 shows, states are regularly forced to make midyear budget cuts. The gaps tend to be largest and most widespread during and immediately after recessions because states’ primary sources of tax revenue—personal income taxes and sales taxes—are sensitive to economic conditions. But gaps can occur during economic expansions as well. 5 ...

What happens if a state spends more money than expected?

When states collect less revenue than expected or spend more money than planned, their leaders often must act quickly to bring revenue and spending back into balance. To close these midyear budget shortfalls, states have limited options. ...

Are state policymakers still managing budgets for the short term?

Despite these reforms, many state policymakers are still managing budgets for the short term. This leaves states vulnerable to future budget deficits from economic downturns and evolving risks such as natural disasters, climate change, population swings, and technological advancements. ...