Navigating State and Local Finances

Source: Susan Kellam, Kim Rueben, Therese J. McGuire, Urban Institute, September 28, 2007

From the abstract:
Past trends will not foretell the future, but charting how state and local finances weathered the 2001 recession suggests viable ways to navigate going forward. Lacking the deficit finance ability of the federal government, states and localities must set a spending course based on anticipated taxes and revenues. An unexpected crisis–like the stock bubble burst at the beginning of this century and the subsequent economic slowdown–that throws budgets into fiscal chaos requires such unpopular bailouts as tax increases or cuts in services and welfare. Did that happen?

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