Budget and Spending

CSG Research & Expertise in the News: 6/12-6/118, 2011

The following compilation features published news stories during the week of June 5-11 that highlight experts and/or research from The Council of State Governments. For more information about any of the experts or programs discussed, please contact CSG at (800) 800-1910 and you will be directed to the appropriate staff.  Members of the press should call (859) 244-8246.

Despite the efforts of Governor Perdue to keep a $19.7 billion budget offered by the state GOP, Republican leaders, with the help of five Democrats in the House, were able to override the veto. The two year budget will take effect July 1, eliminating temporary taxes and reduce the sales tax from 7.75 to 6.75 percent.

In a statement issued by Gov. Perdue, she states “this budget is shortsighted and irresponsible. It cuts a full...

According to a new report out by UBS Investment Research, as many as 450,000 state and local government employees could be laid off in the upcoming fiscal year.   This is a significant increase compared to last fiscal year’s layoffs, which totaled about 300,000 positions.

The report goes on to say that the increase is largely due to the ending of ARRA funds, including enhanced Medicaid matching rates and the education jobs...

Seeking greater efficiencies in state government operations, Ohio lawmakers are turning to the power, expertise and resources of the state auditor for help. 

States, meanwhile, are feeling the fiscal and political pressure to improve disclosure in their programs that provide tax breaks and grants to businesses.

Rural states should prepare to have fewer federal dollars in their economies.  The Obama administration has proposed cuts in USDA funding and Congress has announced a ban on earmarks, which have historically been a boon to some rural areas.

Over the past few decades, more states have move away from the use of biennial fiscal cycles in favor of annual budgets, but Iowa and Michigan are considering bucking that trend.

Soon after Rick Snyder introduced his first proposed budget as Michigan’s governor, lawmakers were being inundated with phone calls about one idea in particular: taxing the pension income of retirees.


The U.S. economy is at a turning point, economist Zachary Karabell says, and states must respond to the expected changes. One only needs to look at the recovery following the Great Recession that many say ended in late 2009, and compare it to previous recessions over the past 60 years, he told an audience during The Council of State Governments’ Growth and Prosperity Virtual Summit.

During the current fiscal crisis, most states in the Midwest have chosen not to enact broad-based tax increases — a trend likely to continue as new annual and biennial budgets are finalized.