Federal Budget
States Brace for Shutdown That Could Hit Revenue and Businesses
Jonah Hilgert plays as his mother, first-grade teacher Toni Fry-Hilgert, gets her classroom ready for the first day of school, in Alton, Ill., this fall. Federal aid to schools is among the items that could be hit by a federal government shutdown. (AP) With the federal government on the brink of a shutdown next week, […]
States’ Fragile Recovery at Risk
Governor Chris Christie delivers his 2013 State of the State address to the New Jersey Legislature. (AP) See: State of the States 2013 With the national economy picking up and the housing market improving, states are poised in 2013 to finally rebound from the recession’s lingering revenue crunch. But continued budget delays in Washington may […]
‘Cliff’ Deal Answers a Few Questions for States
Congress averted the much-feared “fiscal cliff” late Tuesday (January 1), passing a legislative package that will be signed by President Obama. The deal answered a few burning questions for state governments, but many still linger. Governors in recent weeks had been pressing Washington to find a way to stave off the combination of tax increases […]
In Fiscal Cliff Talks, Governors Get White House Seat
President Barack Obama, flanked by National Governors Association (NGA) Chairman, Delaware Gov. Jack Markell, and NGA Vice Chair, Oklahoma Gov. Mary Fallin, meets with the NGA executive committee regarding the fiscal cliff Tuesday in the Roosevelt Room at the White House in Washington. Treasury Secretary Tim Geithner is at right. (AP Photo/Charles Dharapak) A bipartisan […]
With VP Pick, Romney Endorses Fed-State Overhaul on Food Stamps, Medicaid
Mitt Romney on Saturday (August 11) unveiled U.S. Representative Paul Ryan as his running mate, a bold pick that indicates the GOP presidential candidate’s support for overhauling the relationship between states and the federal government — primarily in the areas of food assistance and health care. On both issues, Ryan has advocated slashing federal funding […]
Federal Credit Downgrade Hurts Colorado Localities
State and local governments expected fallout when Standard & Poors downgraded the federal government’s credit rating last year. Governors, county executives and other local leaders worried that the decision would have a ripple effect nationally, not only harming the stock market but leading to credit downgrades for their own governments as well, particularly if they […]
Governors Protest Cuts to Air Guard
Forty-nine governors sent a letter to Defense Secretary Leon Panetta on Monday (February 27), calling on the Pentagon to reconsider its plan to slash funding for the Air National Guard. “As commanders-in-chief, we appreciate the need to reorganize, restructure and modernize the military to meet new threats and economic realities. We also understand the need […]
Congressional Wrangling Leaves Sales Tax Deduction in Question
The budget debate on Capitol Hill this week is primarily about the payroll tax, but residents of seven states without an individual income tax Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming have an extra incentive to see how it turns out. For years, residents of those states have been able to deduct state […]
Obama Budget Shakes Up Municipal Bonds
In the new federal budget he proposed on Tuesday (February 13), President Obama wants to reduce the tax breaks enjoyed by high-income earners who buy municipal bonds. But state and local governments believe the move would increase their borrowing costs and complicate financing for capital projects. Reuters reports that, if approved, the proposal could “rock […]
States Await Outcome of Wrangling Over Obama Jobs Plan
Crafted to win support on both sides of the aisle, President Obama’s $447 billion jobs plan has run into party politics in Congress, leaving states to wonder if they will see some — or any — of the fiscal help that the measure would provide them. The president’s legislation failed its first test on Capitol […]
Congressional Super Committee Short on State Experience
When Chris Van Hollen was a freshman state legislator in Maryland in 1992, one of his first experiences was frustration with the federal government. He had successfully sponsored a bill to charge higher taxes on vehicles with poor gas mileage. The National Highway Traffic Safety Administration blocked the new law, however, saying it conflicted with national […]
Before Jobs Speech, Obama Pushes Highway Funding
In the final days leading up to his congressional speech tonight on job creation, President Obama has been trying to make the case that repairing the nation’s roads and bridges would keep more than a million Americans employed. The president has repeatedly called on Congress to keep federal money flowing to the states through reauthorization […]