Four Helpful Hints for States Dealing With Deficits


 

Publication Date: March 2008

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s):

Research Area: Banking and finance; Government

Keywords: Economic projections; Fiscal future; State budgets; Recession

Type: Report

Abstract:

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.