State Budget and Tax
New Fiscal Year Brings Painful Spending Cuts, Continued Budget Gaps In Almost Every State
“The 2010 fiscal year begins for most states July 1. It brings an austere continuation of recession-driven cuts in essential services and poor prospects for improvement through 2011, according to a series of updated reports on state budget conditions.” Read press release
Updated Reports in the Series:
- State Budget Troubles Worsen
“At least 48 states addressed or are facing shortfalls in their budgets for the upcoming year totaling $166 billion or 24 percent of state budgets…. Aggregate gaps through 2011 likely will exceed $350 billion.”
- Tax Measures Help Balance State Budgets
“… Twenty-five states this year have enacted tax increases. Another 12 states are considering similar measures.”
- An Update on State Budget Cuts
“At least 39 states have imposed cuts that hurt vulnerable residents including health care, services to the elderly and disabled, K-12 education, higher education, and other areas.”
- Federal Fiscal Relief for States Is Working as Intended
“The federal aid is enough to close, on average, roughly 30-40 percent of state budget shortfalls.”
Basics
State and local governments are the main source of funding for K-12 education, public colleges and universities, health care, transportation, public safety, and many other services — including services for low-income and other vulnerable residents. They finance these services mostly through taxes and fees, primarily income and sales taxes. (Not every state has an income and sales tax.) Unlike the federal government, states must balance their budgets on an annual basis.
- Where Do Our State Tax Dollars Go?
- Property Tax Caps
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Featured Experts
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Nicholas Johnson
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Iris Lav
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Michael Mazerov
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Elizabeth McNichol
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Jon Shure
The Center’s State Fiscal Project works with state officials and state-based nonprofits to develop responsible budget and tax policies that take the needs of low-income families into account. We provide information and technical assistance on a variety of issues, including strengthening state tax systems, state budget priorities, and making low-income programs more effective. We also help state nonprofits understand how federal budget and tax decisions affect states and their residents.
New
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Video: Jon Shure Talks About the State Budget Crisis on CSPAN's Washington Journal
July 2, 2009
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Audio: Bloomberg Radio Interviews Iris Lav on the State Budget Crisis
July 1, 2009
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Video: CNN Interviews Jon Shure on the State Budget Crisis
July 1, 2009
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An Update on State Budget Cuts
Updated June 29, 2009
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Federal Fiscal Relief Is Working As Intended
Updated June 29, 2009
- More:
- View All By Date
Of Interest
Pulling Apart: A State-by-State Analysis of Income Inequality
Budget Cuts or Tax Increases at the State Level: Which Is Preferable During an Economic Downturn?
Many States Tax Working-Poor Families Deeper into Poverty
Faulty Foundations: State Structural Budget Problems and How to Fix Them
The State Fiscal Analysis Initiative
The State Fiscal Analysis Initiative brings together nonpartisan, independent, nonprofit organizations in more than 30 states. These organizations have diverse backgrounds and missions, but they share a commitment to rigorous policy analysis, responsible budget and tax policies, a particular focus on the needs of low- and moderate-income families.
