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BUDGET GIMMICKS

Budget Gimmicks

Find the SBS update of the latest budget gimmicks here, or click here to review the worst budget gimmicks of 2013. SBS researches and reports on budget gimmicks to inform legislators and citizens and help them combat budget dishonesty within their states. Budget dishonesty can only survive in states that lack transparency and awareness, and that's where SBS comes in.

Though almost all states have so-called "balanced budget" amendments requiring general fund expenditures to stay within state revenue limits, state budgets are often very far from balanced. See why those balanced budget amendments are not enough here. Legislators and governors have developed a deep bag of tricks to "solve" budget gaps: delaying paychecks for a week so that they fall in the next fiscal year; underfunding state budget commitments; borrowing and transferring from designated funds; inflating future revenue projections and estimations. This consistent habit of kicking the can down the road has put states in their current fiscal catastrophe.

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    • HEADLINES: Illinois, Indiana, Kentucky, Michigan, Nebraska, New Jersey, North Carolina , South Dakota, Texas, Vermont, New York, Pennsylvania, Oregon

      Williams Report - July 29, 2014

      by Bob Williams | July 29, 2014

      Join us on Twitter today by following @StateBudgets and tweeting with the hashtag #SBSBob.

    • HEADLINES

      Williams Report - July 21, 2014

      State Budget Solutions | by Bob Williams | July 21, 2014

      The Williams Report is BACK after a one week hiatus. Be honest, you missed it! Join us on Twitter today by following @StateBudgets and tweeting with the hashtag #SBSBob. 

    • HEADLINES

      States with budget surpluses may not really be in the black

      State Budget Solutions | by Joe Luppino-Esposito | July 17, 2014

      State Budget Solutions tracks the claimed surpluses of state budgets and explains why there is more than meets the eye.

    • HEADLINES: Illinois, Indiana, Maine , Massachusetts , Michigan, New Jersey, North Carolina , Oklahoma

      Special Edition Williams Report July 2, 2014

      State Budget Solutions | by Bob Williams | July 2, 2014

      Welcome to a special edition of the Williams Report! There has been a lot of news this week: an important U.S.Supreme Court decision on unions and the end of the fiscal year in many states have been in the headlines. Join us on Twitter today by following @StateBudgets and tweeting with the hashtag #SBSBob.

    • HEADLINES: New Jersey

      NJ state budget primer: It's more than you think

      The Daily Record | by Michael Symons | May 27, 2014

      In general, the bottom-line number that gets used - which for the 2015 state budget, starting in July, was trimmed nearly 5 percent last week to $32.7 billion - reflects state appropriations, meaning the spending the state controls through the taxes it collects for general purposes. Federal funds and dedicated funds, all of which are required to be used for a specific purpose or program, aren't included in that number.

    • POLICY BRIEF: Pennsylvania

      Zogby: Teachers’ union using ‘budget gimmicks’ in calling for rehiring of laid-off teachers

      The Pennsylvania Independent | by Maura Pennington | November 1, 2013

      State Budget Secretary Charles Zogby said, "It's unfair to the students, to the schools, and to the SRC to be hiring people based on one-time savings. These are the kind of budget gimmicks that got the district into trouble in the first place."

    • RESEARCH

      Forecasting the Recovery from the Great Recession: Is This Time Different?

      The National Bureau of Economic Research | by Kathryn Dominguez & Matthew Shapiro | February 4, 2013

      Was the slow recovery of the U.S. economy from the trough of the Great Recession anticipated? 

    • RESEARCH

      On Financing Retirement with an Aging Population

      The National Bureau of Economic Research | by Ellen McGrattan & Edward Prescott | February 4, 2013

      Alternative views on the problem the United States is facing: financing retirement consumption as its population ages.

    • RESEARCH

      State Budget Crisis Task Force Report

      State Budget Crisis Task Force | by Richard Ravitch and Paul Volcker | July 17, 2012

      State finances are not transparent and often include hidden liabilities as well as rapidly growing responsibilities which are difficult to control.  While state revenues are gradually recovering from the drastic decline of the Great Recession, they are not growing sufficiently to keep pace with the spending required by Medicaid costs, pensions, and other responsibilities and obligations.  This has resulted in persistent and growing structural deficits in many states which threaten their fiscal sustainability.

    • RESEARCH

      Budget Gimmicks Used by States

      by Bob Williams | January 19, 2012

      Because many states do continue to rely on the gimmicks, SBS tracks what financial games the states are playing.  The gimmicks are many and varied.  This is an overview of many of the gimmicks that states have recently used.

    • SOLUTIONS

      How Reality-Based Budgeting Can Permanently Resolve State Budget Gaps

      State Budget Solutions | by Bob Williams | November 7, 2012

      State Budget Solutions recommends that state legislators take action in 2013 to resolve the serious state financial crises by changing their focus from inputs to outcomes by redesigning budgets from the ground up based on priorities and performance.

    • SOLUTIONS: Nevada

      Responsible budgeting

      The Nevada Policy Research Institute | by Geoffrey Lawrence | November 3, 2011

      States should use the budget solutions of avoiding budget gimmicks and use any additional revenue to first eliminate all the dubious financial devices from budgets and to avoid state debt.

    • SOLUTIONS: Colorado

      The Citizen's Budget

      The Independence Institute | March 8, 2011

      The Citizens' Budget includes legislative, constitutional, and policy recommendations to close the looming state budget gap - without raising taxes - and move Colorado towards sustainable government for good.

    • SOLUTIONS: Florida

      Transparency in Government Spending: Next Steps for Florida

      The James Madison Institute | by Sandra Fabry | March 8, 2011

      While several improvements have been made to bring Florida's tradition of "Government in the Sunshine" into the 21st Century, it seems appropriate that the year that marked the anniversary of the beginning of Florida's tradition of "government in the sunshine" also became the year in which
      Florida took an important leap towards living up to its nickname of the "Sunshine State," particularly in the area of government finance.

    • SOLUTIONS: Illinois

      Budget Solutions 2012

      To reestablish Illinois as an economic powerhouse, the Institute has proposed "Budget Solutions 2012," an alternative that does not rely on the state's recent tax hikes as a revenue source, does not include borrowing and has positive cash flow for fiscal year 2012 - all while funding core services the poor and disadvantaged rely upon.

    • HEADLINES: Illinois, Indiana, Kentucky, Michigan, Nebraska, New Jersey, North Carolina , South Dakota, Texas, Vermont, New York, Pennsylvania, Oregon

      Williams Report - July 29, 2014

      by Bob Williams | July 29, 2014

      Join us on Twitter today by following @StateBudgets and tweeting with the hashtag #SBSBob.

    • HEADLINES

      Williams Report - July 21, 2014

      State Budget Solutions | by Bob Williams | July 21, 2014

      The Williams Report is BACK after a one week hiatus. Be honest, you missed it! Join us on Twitter today by following @StateBudgets and tweeting with the hashtag #SBSBob. 

    • HEADLINES

      States with budget surpluses may not really be in the black

      State Budget Solutions | by Joe Luppino-Esposito | July 17, 2014

      State Budget Solutions tracks the claimed surpluses of state budgets and explains why there is more than meets the eye.

    • HEADLINES: Illinois, Indiana, Maine , Massachusetts , Michigan, New Jersey, North Carolina , Oklahoma

      Special Edition Williams Report July 2, 2014

      State Budget Solutions | by Bob Williams | July 2, 2014

      Welcome to a special edition of the Williams Report! There has been a lot of news this week: an important U.S.Supreme Court decision on unions and the end of the fiscal year in many states have been in the headlines. Join us on Twitter today by following @StateBudgets and tweeting with the hashtag #SBSBob.

    • HEADLINES: New Jersey

      NJ state budget primer: It's more than you think

      The Daily Record | by Michael Symons | May 27, 2014

      In general, the bottom-line number that gets used - which for the 2015 state budget, starting in July, was trimmed nearly 5 percent last week to $32.7 billion - reflects state appropriations, meaning the spending the state controls through the taxes it collects for general purposes. Federal funds and dedicated funds, all of which are required to be used for a specific purpose or program, aren't included in that number.

    • HEADLINES: New Jersey

      Chris Christie to reduce pension payments to balance NJ budget

      NJ.com | by Salvador Rizzo | May 21, 2014

      In a stunning reversal, Gov. Chris Christie today announced plans to grab, over two years, $2.43 billion meant for public workers' pensions to balance New Jersey's ailing state budget.

    • HEADLINES: Connecticut

      Gimmicks Needed To Make State Budget Balance

      The Hartford Courant | May 6, 2014

      Pushed into a corner by a lag in tax revenues, Gov. Malloy and the majority Democrats in the General Assembly are using gimmicks of their own in passing what they say is a balanced budget for the fiscal year that begins July 1.

    • HEADLINES

      Richard Ravitch: State fiscal crises aren't over

      Newsday | by Michael Gormley | April 25, 2014

      Former Lt. Gov. Richard Ravitch, who helped New York City escape bankruptcy 40 years ago, warned Wednesday that the fiscal crisis isn't over in New York and other states, despite election year plans to cut taxes and spend more.

    • HEADLINES: Delaware

      Delaware budget writers look for ways to plug shortfall

      Newsworks.org | April 22, 2014

      The Delaware Office of Management and Budget is trying to plug the state's projected fiscal year 2014 revenue shortfall with money that has not been used by other departments.

    • HEADLINES: New York

      DiNapoli: Some good, some bad in state budget

      The Rochester Democrat & Chronicle | by Joseph Spector | April 21, 2014

      New York state ended last fiscal year in its best financial position in years, but the state will rely on borrowing, one-shot revenue and uncertain funding to do it, a report Monday from state Comptroller Thomas DiNapoli found.