Source: Michael Mazerov, Center on Budget and Policy Priorities, January 22, 2018
from the summary:
The deep income cuts that Kansas enacted in 2012 and 2013 for many business owners and other high-income Kansans failed to achieve their goal of boosting business formation and job creation, and lawmakers substantially repealed the tax cuts earlier this year. Former supporters have offered explanations for this failure to prevent the Kansas experience from discrediting “supply-side” economic strategies more broadly. But the evidence does not support these explanations. Rather, the Kansas experience adds to the already compelling evidence that cutting taxes does not improve state economic performance…..
Source: Jeff Hughes, Lexi Kay Herndon, Journal – American Water Works Association, Volume / Number: 110, Number 1, January 2018
From the abstract:
A study of private financing models in the water industry examines variations in implementation and design and whether outcomes differ from initial expectations.
Source: Ryan Maness, MultiState blog, January 9, 2018
Twenty-five states are currently facing a revenue shortfall, which is a marked improvement over our report from last year, when 31 states were in deficit. New additions to this year’s list include Arizona, Florida, Kentucky, Minnesota, and New Jersey. Colorado, Delaware, Massachusetts, Mississippi, Montana, New Mexico, Virginia, and Washington have improved enough to drop off our 2018 list.
Source: The Economist, December 23, 2017
How states and the federal government offset the effects of local inequality.
Source: Moody’s, Sector In-Depth, December 19, 2017
Retiree health benefits vary considerably among states. Despite generally greater legal flexibility to change these benefits compared to pensions, large liabilities and significant costs persist for some state employers who offer generous benefits. We do not expect new accounting rules to have a material impact on costs, but the new rules will facilitate probing credit risk, especially important for those issuers whose retiree benefits have stronger legal protections.
Source: Moody’s, December 19, 2017
This cross-sector rating methodology replaces the Adjustments to US State and Local Government Reported Pension Data methodology published in April 2013. We have updated the description of our standard balance sheet adjustment and included a description of our standard income statement adjustment. Both of these reflect the implementation of Governmental Accounting Standards Board Statement 68 accounting standards, which requires adjustments that were not previously necessary. We have retired the concept of amortizing adjusted net pension liabilities on a level dollar basis over 20 years, a cost metric not included in any scorecards of primary rating methodologies. We have also added a description of how we calculate the “tread water” indicator….
Source: Paul T. Jaeger, Erin Zerhusen, Ursula Gorham, Renee F. Hill, Natalie Greene Taylor, The Library Quarterly, Volume 87, Issue 4, October 2017
From the abstract:
The engagement of the US federal government with libraries has been disjointed. Financial support for libraries has been controversial and inconsistent, and many policy decisions have directly affected library operations and activities, particularly those of public libraries. Libraries’ experiences with the federal government offer many lessons about the broad ideological attitude toward—and constraints on—library support before the 2016 election. These lessons have import for all public-sphere institutions as they navigate the even more complicated current environment. This article argues that the best hope for library funding and support is to concentrate efforts at the local and state levels, coordinating efforts and sharing ideas and resources across locations and types of institutions. A national advocacy strategy coordinated across the states will maximize advocacy efforts where we may have a greater chance of success.
Source: Lucy Dadayan, State Revenue Report – Second Quarter 2017, Report #109, December 2017
State and local government tax revenues grew modestly in the second quarter of 2017, although revenues from state and local personal income taxes declined and continued to show significant swings from one quarter to the next. State sales taxes and corporate income taxes also increased in the second quarter, as did state motor fuel taxes, but state sales tax revenues still lagged behind rates of increases in previous economic expansions. Finally, local government property taxes grew, although their rate of growth slowed from recent trends…..
Source: Sarah Crane, Regional Financial Review, November 2017
Legalization has spurred job creation in a number of industries in the production and sales process, as well as generated multiplier effects in related services and the broader Colorado economy. In addition, legal cannabis sales have generated sizable tax revenue for state and local governments.
Source: Moody’s, Sector Comment, December 17, 2017
The proposed elimination of private activity bonds (PABs) as part of US tax reform would be credit negative for the public housing, healthcare, higher education, charter schools and infrastructure sectors. However, the severity of the impact would vary. Elimination of taxexempt PABs is included in the tax reform bill that passed the US House of Representatives on November 16, but it is not in the US Senate bill that passed December 2. The two bills are currently undergoing reconciliation in a congressional conference committee. The size of the PABs market is difficult to determine due to municipal bond classifications, but indications are the bonds accounted for approximately 25% to 35% of the $459 billion in municipal bonds sold in 2016. Substantial authorized PAB capacity currently exists, as the volume cap capacity of $97.4 billion at the end of 2016 was the largest ending volume cap capacity recorded since 2005…..