States balanced budgets by cutting spending, says CBPP report

The Center on Budget and Policy Priorities, which focuses on state and federal budget policies, issued a new report Thursday (4/18/12) analyzing how states resolved their budget shortfalls: “Cuts in Services Have Been States’ Primary Response to Budget Gaps, Harming the Nation’s Economy.” The report documents $290 billion in budget cuts, $100 …

Fiscal emergency creeps across Oregon

Oregon counties are following New York’s into the world of fiscal crisis: During February’s legislative session, Oregon lawmakers created some new tools to help counties facing fiscal insolvency. Curry County is expected to be the first off the cliff, with $5 million dollars in obligations coming due in July. NPR …

The unkindest cut: automatic triggers

Background on the looming California budget cuts this spring… Every government bases an adopted budget on revenue projections (and engages in a variety of tactics for keeping money flowing out while it waits for that revenue to flow in). Of course, those projections meet reality at some point during the …

A Self-Inflicted Mess?

Although Rick Perry is no longer a presidential candidate, he still governs more than 25 million people. In the early stages of his candidacy last year, Texas’ budget struggles made headlines as they called into question his self-avowed fiscal conservatism. Although they often disappear from the headlines once the final …

What a Drag | Jared Bernstein | On the Economy

A  simple and elegant statement of why balanced budget laws and cutting government spending aren’t necessarily economically responsible, even as they are touted as the height of fiscal responsibility. Unlike the feds, states have to balance their budgets every year, which means they either raise taxes or cut services.  They …

Devolving the Budget Crisis

An important piece in the NYT from back in March about state efforts to balance their budgets by cutting aid to cities. The article talks about the “balloon” effect: states reduce spending and sometimes taxes by reducing (or eliminating) aid to cities. Cities may respond by raising local taxes in …

Fiscal emergencies in Michigan

In 2010, Governor Snyder of Michigan signed an emergency manager law that has resulted in the takeovers of four Michigan cities and the Detroit Public School District. The state has also taken preliminary steps in the process of declaring fiscal emergency in the city of Detroit. There is an important …