Fiscal Evasion in State Budgeting
A working paper
July 22, 2010 by EILEEN NORCROSS
The inconsistent identification of poor fiscal practice indicates the lack of a common framework against which to assess the fiscal choices of states. This paper establishes a basic definitional framework that can be used to assess long-running fiscal practices in the states against a standard of fiscal prudence. The aim is to further refine this framework to capture the drivers of the states' long-running fiscal problems and to offer recommendations for reform.
Reduce State Spending
July 9, 2010
States must adopt fundamental reforms by: establishing priorities through "Reality-based Budgeting," privatizing, forcing government contractors to compete and increasing transparency.
Reject Tax Increases
July 9, 2010
Policy makers must reject tax increases that kill jobs and hurt the state's economy. States must hold the line on taxes by rejecting increases on personal and corporate income taxes, permanently limiting taxes, maximizing non-tax revenues and by collecting upfront on the tobacco settlement.
Adopt Fundamental Reform
July 9, 2010
States must adopt fundemental reforms and establish priorities through “Reality-based Budgeting.” Scrap the current budget. Ignore historical rates of agency/program funding (inputs). Priorities and performance must drive budget allocations. Crafting a sustainable budget requires legislators to address four key questions at the start of every session.
Zero-Base Budgeting in the States
From The National Conference of State Legislatures
June 4, 2010
Zero-base budgeting (ZBB), in its original form, is a system of budgeting that begins every budget cycle at zero, rejecting any assumption that the activities that were funded in the last budget will continue in the coming one. It requires a rationale for each activity that will be funded for the new budget. It is intended to foster analysis of every activity, prioritization of budget activities, cost-effectiveness and economy.
Fundamentals of Sound State Budgeting Practices
From The National Conference of State Legislatures
June 1, 2010
This report deals with the nuts and bolts of state budgeting practices--ways to make the process of enacting and managing a budget work more smoothly. It is designed primarily for new legislators, legislators who have not been members of budget committees, and people outside legislatures who are interested in state budgeting processes. The report does not try to explain state budgeting processes from A to Z. It is concerned with some issues in the budget process that are common to all the states and it reports on procedures that states have developed to strengthen the process
Seven Key Aspects of Governing During Crisis
From The Mercatus Center
May 24, 2010
States are facing severe budget shortfalls, and it appears likely they will get worse before they get better. Legislatures nationwide are in a tight spot. But if states reevaluate their functions and business practices in the process of closing the gap between expenditures and
revenues, they will be well-positioned to thrive in the future and avoid the hangovers of overspending.
States Buying Smarter: Lessons learned from Minnesota and Virginia
From The Pew Center on the States
May 12, 2010
States spend nearly $200 billion annually purchasing goods and services-paying for everything from building roads and bridges to buying desks and computers. Conservative estimates suggest that reform of government procurement practices could save 5 to 10 percent of that total spending.
State Budget Solutions with Bob Williams
The week of May 3rd
May 7, 2010
Video of Bob Williams addressing the underfunded state pension fund problem facing so many states. He states that the public cannot afford the benefits and suggests defined contribution programs as a solution.
End the Budget Bait and Switch
From Inside ALEC
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.
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