The state-budget train crash
Why this could cost lives and set back economic recovery
THE START of the fiscal year—July 1st in most states—is usually about as exciting as a 501(a) tax filing and as unpredictable as a Saudi weather forecast (sunny again!). Not this time. State tax revenues collapsed in April, falling on average by half, according to the Urban Institute, a think-tank. Demands on spending soared because the states are responsible for much of America’s spending on public health, unemployment and policing. By some calculations, state-budget deficits will reach a quarter of revenues in the coming fiscal year—or would do, if most states had not bound themselves by law to run balanced budgets. So instead of vast deficits, the states will have to make savage cuts to public services in the midst of a recession and pandemic. Through no fault of their own, their budgets are out of control and are about to hit the buffers.
This article appeared in the United States section of the print edition under the headline “The calamity ahead”
United States June 20th 2020
- The state-budget train crash
- America’s Supreme Court protects LGBT workers against discrimination
- The pandemic is making America rethink its shunning of midwifery
- Details from John Bolton’s book are damning for Donald Trump
- New Yorkers turn their backs on Bill de Blasio
- The bid to unseat the last New England Republican in Congress
- America rediscovers the joys of vegetable-growing
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