Highlighting state-level efforts to achieve fiscal responsibility in government
Although most discussions of fiscal policy focus on the federal government's fiscal challenges, state governments also face daunting structural deficits that threaten economic growth and investments in the future. According to a recent study of six heavily populated states and their budgetary challenges by the State Budget Crisis Task Force (a Peter G. Peterson Foundation grantee), it is clear that if the unsustainable policies driving these deficits go unaddressed, drastic and costly solutions will be required.
However, a number of states have also demonstrated that progress is possible. State-level leaders have been able to bring people together to solve these challenges, and their example shows that the gridlock our nation faces on the budget can be overcome.