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REVENUE

Revenue

Like any business or household, revenues play a critical role for states in determining their levels of spending. Nearly every state is constrained by a balanced budget amendment requiring their general fund expenditures not to exceed revenues (though budget games have allowed them to relax this constraint considerably). When times are tough, many legislators who loathe cutting programs turn to higher taxes as a way to increase revenue. However, as economist Arthur Laffer has shown, higher taxes do not always increase revenue. Minnesota, for example, has been driving high-earners (and their tax dollars) out of the state with its' unfriendly tax climate. Understanding the dynamics of taxation and state revenues is essential for anyone who seeks solutions to state revenue problems; SBS is here to help.

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    • HEADLINES: Oregon

      Oregon state budget outlook: Jobs make up for drop in fees, corporate taxes

      The Oregonian | by Christian Gaston | February 12, 2014

      Oregon State Economist Mark McMullen gave a status quo report, with revenue from taxes and the lottery coming in slightly below expectations but job growth making up the difference.

    • HEADLINES: Pennsylvania

      At a time of surpluses elsewhere, Pennsylvania faces deficit

      Washington Post - GovBeat | by Reid Wilson | February 10, 2014

      After years of harsh budget cuts, the economic recovery has meant good news for states reaping the benefits of rebounding tax revenue. California has a $4.2 billion surplus. New York has $2 billion in extra cash. Across the country, state revenue is up 3.8 percent over last year, according to the National Association of State Budget Officials.

      But in Pennsylvania, the picture isn’t as rosy.

    • HEADLINES: New York

      Potential big-ticket budget items loom in NY

      The Wall Street Journal | February 6, 2014

      Even as Gov. Andrew Cuomo talks about multi-year tax cuts and surpluses, potential state budget challenges loom on the horizon.

    • HEADLINES: Michigan

      Snyder unveils 2015 budget with focus on education

      The Detroit News | by Chad Livengood and Steve Pardo | February 5, 2014

      Gov. Rick Snyder unveiled a 2015 fiscal year budget plan Wednesday that called for a $103 million tax cut for low- and middle-income residents and proposed pouring $609.3 million more into education programs from early childhood to college.

    • HEADLINES: Tennessee

      Haslam releases budget, delivers State of the State address

      WBIR.com | February 3, 2014

      The Republican governor has described this upcoming budget as the most difficult of his tenure. Tennessee collected $176 million less in taxes than it expected this year, leaving a gap that must be filled before the new budget year starts in July.

    • HEADLINES: Delaware

      Gov. Markell calls for pay raises, higher taxes

      The Washington Post | January 31, 2014

      Gov. Jack Markell on Thursday proposed an operating budget for the upcoming fiscal year that is 3 percent higher than this year's budget and relies on tax hikes and funding shifts to cover expenses.

    • HEADLINES: Massachusetts

      Massachusetts House Speaker Robert DeLeo rules out increased taxes, vows to pass minimum wage increase

      MassLive.com | by Shira Schoenberg | January 30, 2014

      Massachusetts House Speaker Robert DeLeo said that the House will not agree to the additional taxes included Gov. Deval Patrick's budget proposal.

    • HEADLINES: Montana

      GOP Montana legislators at odds on state spending increase

      The Missoulian | by Charles S. Johnson | January 29, 2014

      Republican legislators are using different comparisons to fight over how much the 2013 Legislature increased state spending over the next two years.

    • HEADLINES

      New data reveals amount of federal aid to states in 2012

      State Budget Solutions | by Joe Luppino-Esposito, Shannan Younger | January 28, 2014

      Surprised to learn that state governments combined received 31.6% of their general revenue from the federal government in 2012, with one state getting a whopping 45.4% from the feds? Click here to learn what percentage of your state's general revenue came from Washington, D.C.

    • HEADLINES: Arizona

      Brewer, budget committee release conflicting budgets

      Arizona Republic | by Alia Beard Rau | January 27, 2014

      Gov. Jan Brewer and legislative economists over the past week released conflicting budget predictions for the next three years, setting the stage for a battle over Arizona’s future.


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    • RESEARCH

      Federal Aid to the States 2008-2011

      by Kristen De Pena | February 21, 2013

      It is well understood that the federal government must make spending cuts-these cuts will most likely drastically change the amount of federal dollars that are allocated to the states. Unfortunately for most states, dependence on federal funding has continually risen since 2008.

    • RESEARCH

      Fiscal Policy Report Card on America's Governors: 2012

      The CATO Institute | by Chris Edwards | October 9, 2012

      This fiscal report card on the governors examines state budget actions since 2010 using statistical data to grade the governors on their taxing and spending records-governors who have cut taxes and spending the most receive the highest grades, while those who have increased taxes and spending the most receive the lowest grades.

    • RESEARCH

      2013 State Business Tax Climate Index

      The Tax Foundation | by Scott Drenkard Joseph Henchman | October 9, 2012

      The Tax Foundation's 2013 edition of the State Business Tax Climate Index enables business leaders, government policymakers, and taxpayers to gauge how their states' tax systems compare. The absence of a major tax is a dominant factor in vaulting many of these ten states to the top of the rankings.

    • 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

      Spring 2012 Fiscal Survey of States

      States will face particularly intense budgetary challenges in education and health care in fiscal 2013, putting pressure on all budget areas - including corrections and infrastructure. As budgets face strain from slow revenue growth and expenditure pressures, states will likely confront tough budgetary choices in the next fiscal year.

    • RESEARCH

      Rich States, Poor States

      ALEC American Legislative Exchange Council | by Arthur B. Laffer, Stephen Moore and Jonathan Williams | April 12, 2012

      This fifth edition of Rich States, Poor States provides 50 unique snapshots from our "laboratories of democracy" for you to evaluate. Study the rankings, read the evidence, and learn about the proven principles that lead to economic growth, job creation, and a higher standard of living for all Americans.

    • 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: New York

      The Case for a Cap

      The Empire Center | December 7, 2011

      This report analyzes the tax cap proposal in light of previous efforts to limit property taxes in New York and other states. Among the findings, New York's local property tax levels are exceptionally high by national standards and have grown by more than double the inflation rate over the past decade, justifying the governor's push to limit future growth.

    • SOLUTIONS: Georgia

      Eight Affordable Ideas for Georgia

      The Georgia Public Policy Foundation | by Eight Affordable Ideas for Georgia | December 2, 2011

      Georgia should continue to push the reforms that have made this one of the best managed states in the nation, but innovation is the best opportunity for true reform. Tax, regulatory and tort reform will create the right conditions for innovation in the private sector while the state pursues innovation in the areas of criminal justice, education and heath care.

    • SOLUTIONS: North Dakota

      Moving Forward

      The North Dakota Policy Council | November 29, 2011

      A guide to needed reforms in pensions, taxes and higher education, among other areas, with  two types of goals that are important when working towards limiting government: long-term policy objectives that show the end-game goals and short-term policies that steer public policy towards the long-term goals. This guide provides both.

    • SOLUTIONS: Nevada

      One Sound State, Once Again

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

      Nevada seriously needs genuine, revenue-neutral fiscal reforms, and this report seeks to fill that vacuum. It analyzes the actual volatility of Nevada's current taxes - and the taxes lawmakers keep signaling they want. It covers important tax-related issues, such as achieving economic efficiency and tax equity, while reducing compliance costs as well as tax-induced distortions in economic behavior. It advocates implementing priority-based budgeting.

    • SOLUTIONS: Oregon

      How to Turn Oregonís Business Climate Around

      The Cascade Policy Institute | by Steve Buckstein | November 3, 2011

      Article presenting the elimination of the Oregon state income tax and the end forced unionism as solutions to both budget problems and lack of business growth.

    • SOLUTIONS: Nebraska

      Pro-Growth Strategy for Nebraska

      The Platte Institute | by Eric Thompson | September 1, 2011

      This report focuses on limiting the regulatory burden in the state and other types of recommendations to improve growth.

    • SOLUTIONS: Illinois, California, Texas

      Amazonian-Size Taxes

      by Kristen De Pena | July 11, 2011

      Proposals to tax Internet retail sales are all the rage as states continue to look for more ways to balance their budgets in the face of revenue shortfalls.

    • SOLUTIONS

      Rich States, Poor States 2011

      Bloated state spending levels and trillions of dollars in unfunded government employee pension liabilities pose huge financial obstacles to economic recovery in the 50 states today. This begs the million-or trillion-dollar question: Why are some states prospering while others are still struggling?

       

       

       

       

    • SOLUTIONS: Texas

      Texasí Fiscal Future

      The Texas Public Policy Foundation | by Arthur B. Laffer | April 1, 2011

      There has been an impression created in the press and embraced by many that the LBB report suggests that adoption of the bill CSHB1 by Texas would cost Texas 272,000 jobs in 2012 and 335,000 jobs in 2013. This answer, at least as interpreted by the press, is wrong and not based on sound economics. The passage of CSHB1 will not cause less jobs in Texas relative to any other option at hand.