MENU

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.

  • Breaking News
  • Research
  • Solutions
  • Commentary
    • HEADLINES: Iowa

      Auditor concludes Branstad budget plan has $144 million "spending gap"

      The Dubuque | by O. Kay Henderson | February 10, 2014

      State Auditor Mary Mosiman says Branstad makes his budget plan balance by using part of the state surplus to cover on-going expenses.

    • 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

      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: Maryland

      Maryland budget analyst calls for a more cautious approach than O'Malley's proposal

      The Washington Post | by Fredrick Kunkle | January 21, 2014

      A top budget analyst urged Maryland lawmakers to take a more cautious approach toward state spending than that taken by Gov. Martin O'Malley in his proposed budget.

    • HEADLINES: West Virginia

      W.Va. gov's buget taps reserves, keeps tax rates

      Businessweek | by Jonathan Mattise | January 9, 2014

      Amid a budget shortfall, Gov. Earl Ray Tomblin plans to avoid raising taxes and give public employees raises by tapping West Virginia's rainy-day fund.

    • HEADLINES

      The worst state budget gimmicks of 2013

      State Budget Solutions | by Joe Luppino-Esposito | January 3, 2014

      State Budget Solutions has been keeping an eye on the bag of tricks employed by legislators and other budget officials. These budget gimmicks hide the true cost of government and set up states for fiscal calamity down the road. In 2013, not much has changed, though some states have attempted to fix gimmicks they employed in the past. 

    • HEADLINES: Connecticut

      State Struggling With Lower Slots, Tobacco Revenues

      Hartford Courant | by Christopher Keating | January 2, 2014

      Too much gambling and too much smoking are not good for anyone.

      Slot machines and cigarettes, however, have been very good for the state of Connecticut.

    • HEADLINES: Alaska

      As Alaska dips into its savings accounts, 'a very real worry' about future funding

      The Alaska Dispatch | by Pat Forgey | December 20, 2013

      Gov. Sean Parnell is proposing that Alaska also dip into the Constitutional Budget Reserve, one of the state's most protected savings accounts, to fund next year's budget.

    • HEADLINES: Maine

      LePage again threatens to sue Appropriations Committee; AG says she won’t take part in 'frivolous' lawsuit

      The Bangor Daily News | by Mario Moretto | November 21, 2013

      Gov. Paul LePage has threatened to sue the state's budget-writing Appropriations Committee if they do not balance the state budget without using what he called accounting gimmicks.

    • HEADLINES: West Virginia

      The way West Virginia prices its bills is flawed, reports find

      Washington Post | by Niraj Chokshi | November 18, 2013

      Fiscal notes, legislative analysis, cost estimates — call it what you want, but the official price tags attached to bills are a key part of legislating at every level of government. Many states have dedicated legislative analysts, and virtually every state has at least some way of estimating the fiscal impact of proposed policies. But West Virginia’s methods may be seriously off the mark, according to a new report.


    • Previous   1  2  3  4  5  6  7  8  9  10  11  12  13   Next

    • 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.

    • RESEARCH

      Report reveals aggregate state debt exceeds $4 trillion

      State Budget Solutions | by Andrew Guevara | October 24, 2011

      State Budget Solutions' second annual state deficit report reveals aggregate state debt presently exceeds $4 trillion. While states themselves can rely on budget gimmicks to hide the extent of the deficit, SBS takes a straightforward approach to calculating total state debt. See where your state ranks.

    • RESEARCH

      The Fiscal Health of U.S. States

      Mercatus Center | by Jeffrey Miron | August 15, 2011

      This paper examines the fiscal health of the 50 U.S. states. As this paper shows, accounting for implicit pension liabilities provides a significantly more negative picture than does explicit debt information on its own.

    • RESEARCH: Connecticut

      Governor Malloy's Many Tax Hikes

      Gov. Malloy has proposed dozens of tax increases across 25 categories of taxes. This is a conservative count; we aren't counting each separate expansion of the sales tax as a separate tax hike, though of course they are.

    • RESEARCH: Hawaii

      Exposing Hawaii's Special Funds

      The Grassroot Institute of Hawaii | by Danny de Garcia II and Kyle Shiroma | March 8, 2011

      Both the decision to raid special funds and the revelation that several may have excess balances or be obsolete provokes one to ask, "Just how many special funds are there, and what is their total in excess balances?" This paper aims to create a starting point for answering that question and to provoke policymakers and taxpayers alike to support a complete audit and publication of all Hawaii State funds - not just special funds - for the purposes of transparency and accountability in government.

    • RESEARCH: Idaho

      Idaho Pork Report 2010

      There is no government or private sector budget with items labeled "government waste," or "junket" or "fraud and abuse." When the Idaho Freedom Foundation began reviewing state and local government records in search of waste, elected officials and bureaucrats claimed that there is very little to discover--that with the recession and cost-cutting measures at all levels of government, there's no room for frills. As it turns out, that was hardly the case, and no one should be surprised.


    • 1  2   Next

    • 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.

    • SOLUTIONS: New Jersey

      The Crisis in Public Sector Pension Plans

      Mercatus Center | by Eileen Norcross, Andrew Biggs | February 11, 2011

      Case study of New Jersey's five public pension plans and exploration of possible solutions, including shifting all newly hired employees to a defined contribution pension model based upon the plan already offered to New Jersey's university employees and continuing current reforms lowering pension replacement rates and, if possible, extended to current employees.

    • SOLUTIONS: Washington

      End the Budget Bait and Switch

      April 29, 2010

      Many governors and state legislators are using accounting gimmicks and federal stimulus funds to temporarily balance their budgets. When federal funds run out in a year or two, these states will face a spending cliff, necessitating a significant downsizing of their state budgets.

    • SOLUTIONS: Arizona

      $50 Billion Tidal Wave: How Unfunded Pensions Could Overwhelm Arizona Taxpayers

      The Goldwater Institute | by Andrew G. Biggs | March 31, 2010

      In a period when financial markets and institutions have appeared near collapse, the accounting methods used by public employee pensions effectively ignore risk. These accounting methods, which are used by public pensions in Arizona and around the country, allow pension fund managers to assume that high returns can be earned through stocks and other investments without taking any market risk. As a result, the true market value of Arizona pension shortfalls that must be funded by taxpayers is understated by around half of what the pension funds have reported.

    • SOLUTIONS

      Fiscal Evasion in State Budgeting

      by Eileen Norcross

      This paper establishes a basic framework that can be used to assess long-running fiscal practices in the states against a standard of fiscal prudence.