Fiscal Pressure Facing State & Local Government
Fiscal Pressure Facing State & Local Government
he financial consequences of the recession that spanned from December 2007 through June of 2009 has increased congressional interest in the financial health of state and local governments. State and local tax revenues declined, expenditures climbed, and debt increased. Even though tax revenue has begun to rebound, expenditures for unemployment benefits and other social programs remain elevated. In response to these state and local government fiscal headwinds, several hearings have been held early in the 112th Congress to examine the health of state and local government finances and the potential effects on the economic recovery. This book provides an overview of state and local government finances and how these governments incorporate borrowing into their budget and the debt parameters of each state.
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