State Finances: Solid Recovery but Challenges Ahead
Most state budgets were in very good shape at the end of fiscal year 2006, and election-year budgets for 2007 will lead to tax cuts. But beyond 2007 states will face challenges, including the need to fund or constrain rapid Medicaid growth, pressures to strengthen pension funding and begin financing newly disclosed liabilities for retiree health care, and the need to respond to large cuts in federal grants.
About the Author
Don Boyd is the director of fiscal studies at the Rockefeller Institute of Government of the State University of New York. His past positions include director of the economic and revenue staff for New York state’s budget office, and director of the tax staff for New York’s Assembly Ways and Means Committee. Boyd holds a Ph.D. in managerial economics from Rensselaer Polytechnic Institute.