Truth and Integrity in State Budgeting
June 13, 2015
The Volcker Alliance, building off prior work by the State Budget Crisis Task Force, has released a preliminary report studying fiscal practices at the state-government level. The report, Truth and Integrity in State Budgeting: Lessons from Three States, examines three states — California, New Jersey, and Virginia — to learn if their budgetary practices were responding to the revenue growth provided by a recovering national economy.
Even as the revenue of state governments in the United States recovers from the longest economic downturn since the 1930s, many states continue to balance their budgets using accounting and other practices that obscure rather than clarify spending choices. These practices make budget trade-offs indecipherable, lead to poorly informed policymaking, pass current government costs on to future generations, and limit future spending options. Further, they weaken the fiscal capacity of states to support the cities and counties that depend on their aid. A primary aim of this preliminary study is to lay the groundwork for a common approach toward responsible budget practices in all 50 states.
Further Reading
The United States Collects Less Tax Revenue Than Other G7 Countries
The U.S. collects less tax revenues compared with other G7 countries, and that lower level of revenues is a key driver of the national debt.
Energy Tax Policy Under the OBBBA
As part of the OBBBA, lawmakers rolled back existing energy tax incentives in order to partially offset the bill’s deficit impact.
Top 10 Reasons Why the National Debt Matters
At $38 trillion and rising, the national debt threatens America’s economic future. Here are the top ten reasons why the national debt matters.