Led by Richard Ravitch and Paul Volcker, the State Budget Crisis Task Force has issued a new report. Many of its conclusions will come as no surprise to readers of this blog. The big point is that states are likely to face serious fiscal problems going forward. The immediate future will be tough, as the Congress is likely to enact significant cuts in state aid as part of a deficit reduction package. Those cuts will probably be far larger than revenue raisers enacted by states during the recession. Other problems, of course, include Medicaid crowding out other needs, poorly structured tax systems, unfunded pension and health commitments to public employees, and obscure accounting practices.
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Copyright © 2013 Manhattan Institute for Policy Research, Inc. All rights reserved.
52 Vanderbilt Avenue, New York, N.Y. 10017
phone (212) 599-7000 / fax (212) 599-3494
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