What the Fiscal Cliff Means for State and Local Budgets

Source: Ryan Holeywell, Governing, December 3, 2012

For full coverage of the fiscal cliff’s impact on states and localities, click here.

The White House and Congress appear to be making little progress in their negotiations to avert the so-called “fiscal cliff” the country is set to face in January as a result of scheduled, automatic spending cuts coupled with the expiration of lower tax rates. For state and local governments, already facing their own budgetary challenges, the $1.2 trillion in cuts threatens to exacerbate their own struggles with revenue in the wake of the recession.

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