Four Helpful Hints for States Dealing With Deficits
Publication Date: March 2008
Special Collection: John D. and Catherine T. MacArthur Foundation
Keywords: Economic projections; Fiscal future; State budgets; Recession
States, facing their worst fiscal problems in five years, should consider the following four policy options when dealing with deficits: (1) protect their revenues from the effects of federal tax changes, (2) tap their "rainy day funds," (3) don't rule out revenue increases, and (4) avoid "stimulus" tax cuts.