Federal revenues will reach $2.45 trillion in 2012 and will increase a little in 2013, reaching $2.96 trillion, according to the Congressional Budget Office’s (CBO) March 2012 Baseline forecast. Congress and policymakers are facing difficult trade-offs as they formulate fiscal policies, especially with the tax increases and spending cuts that are due to kick in during 2013. Read about federal fiscal trends in the first part of this series.
Recently, state tax collections have provided some optimistic headlines. State tax revenues have continued to expand, and in the final quarter of 2011, states recorded their eighth consecutive quarter of growth. Continued business expansions, including new strength in manufacturing, should keep the momentum going. Read about state finances in the second part of this series.
These are challenging times for local governments, with both property values and property tax revenues declining in many cities. The disappointing May jobs numbers led the National League of Cities (NLC) to urge Congress to stop its gridlock and to pass a long-term transportation bill that would put large numbers of construction workers back on payrolls. Read about local government fiscal realities in the third part of this series.
…Other topics include:
Public works and transportation construction
Economy and government purchases