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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: Massachusetts

      House approves $34B Mass. budget

      Boston.com | April 25, 2013

      The Massachusetts House has passed and sent to the Senate a $34 billion state budget for the fiscal year starting July 1.

    • HEADLINES: Washington

      Internet sales tax bill could boost state budget by $184 million

      The Seattle Times | by Jim Brunner | April 23, 2013

      The bill before Congress would not create a new tax. Legally, consumers are responsible for paying their state's sales tax on Internet purchases now -but few do when the tax isn't automatically added to their online bill.

    • HEADLINES: Washington

      State Senate budget raises eyebrows but not taxes

      The News Tribune | by Jordan Schrader | April 22, 2013

      State lawmakers are going down to the wire to negotiate a budget deal, but they haven't even agreed on whether the numbers they're using are real or imaginary.

    • HEADLINES: Indiana

      House And Senate Ironing Out Final Budget

      Indiana Public Media | April 18, 2013

      Both budget proposals in Indiana increase school funding by three-percent over the next two years, and accelerate the planned phaseout of the inheritance tax.

    • HEADLINES: Delaware

      Drop in state tax revenue clouds budget projections

      DelawareOnline.com | by Doug Denison | April 16, 2013

      Delaware tax revenues moved down slightly over the last month, erasing most of a small gain noted in March, budget analysts said Monday.

    • HEADLINES: New York

      Comptroller gives NY budget mixed reviews

      The Wall Street Journal | April 15, 2013

      Comptroller Thomas DiNapoli gave mixed reviews Friday to the state budget passed last month amid New York's ongoing struggles with financial challenges following the national recession and massive storms.

    • HEADLINES: Ohio

      Ohio House revises Kasich Medicaid, tax proposals

      Businessweek | by Julie Carr Smyth and Ann Sanner | April 10, 2013

      The Republican-led chamber's answer to GOP Gov. John Kasich's spending blueprint spends about $2 billion less while retaining a 7 percent permanent income-tax reduction statewide and removing tax increases on professional services and drilling.

    • HEADLINES: Connecticut

      With Guns Finished, Legislators Now Tackle State Budget Deficit

      The Hartford Courant | by Christopher Keating | April 8, 2013

      Connecticut state legislators are now turning their attention to another major issue: solving a state budget deficit that is projected to be near $1 billion in each of the next two years.

    • HEADLINES: New Mexico

      Governor signs budget with raise for state workers

      The Santa Fe New Mexican | April 8, 2013

      New Mexico's state workers and educators are in line for their first across-the-board pay increase in four years under a nearly $5.9 billion state budget signed into law Friday by Gov. Susana Martinez.

    • HEADLINES: New Jersey

      As Christie Runs, State Could Face A Shortfall

      The Wall Street Journal | by Heather Haddon | April 5, 2013

      New Jersey could face a revenue shortfall of more than $637 million by next June, according to one analysis.


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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.