State Budget and Tax
Most States Funding Schools Less Than Before the Recession
States’ new budgets are providing less per-pupil funding for kindergarten through 12th grade than they did six years ago — often far less.
At a time when states and the nation are trying to produce workers with the skills to master new technologies and adapt to the complexities of a global economy, this decline in state educational investment is cause for concern.
Related: Media Briefing: Examining States’ Dramatic Cuts to K-12 Education
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.
Policy Basics:
- Policy Basics: The ABCs of State Budgets
- Where Do Our State Tax Dollars Go?
- Property Tax Caps
- Tax Payer Bill of Rights (TABOR)
- State Earned Income Tax Credits
Featured Experts
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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Media Briefing: Examining States' Dramatic Cuts to K-12 Education
September 12, 2013
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Most States Funding Schools Less Than Before the Recession
September 12, 2013
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States Should React Cautiously to Recent Income Tax Growth
Revised September 5, 2013
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Four Steps to Moving State Sales Taxes Into the 21st Century
July 9, 2013
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Academic Research Lacks Consensus on the Impact of State Tax Cuts on Economic Growth
June 17, 2013
- More:
- View All By Date
Of Interest
Tax Flight Is a Myth:
Higher State Taxes Bring More Revenue, Not More Migration
A Common-Sense Strategy for Fixing State Pension Problems in Tough Economic Times
Promoting State Budget Accountability Through Tax Expenditure Reporting
Expanding Sales Taxation of Services: Options and Issues
Pulling Apart: A State-by-State Analysis of Income Inequality
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.




