The Fiscal Link
Your On-Line Connection to the Latest Fiscal Information in the States: June 2008
The NCSL Budgets and Revenue Committee will meet at the Legislative Summit (Annual Meeting) in New Orleans to consider policies and discuss key budget and revenue topics, including state fiscal conditions, legislative oversight of public-private transportation projects, emerging tax policy issues, performance budgeting, and the streamlined sales tax project. Members also will have an opportunity to talk with David Wyss, Standard & Poor's chief economist, about the world economy.
Register now for the annual Fiscal Analysts Seminar in Madison, Wisc., Sept. 23-26, 2008. The seminar provides both the knowledge of national experts and the expertise of senior legislative staff who are policy experts in their states. This year's seminar offers 20-plus panels, discussions and presentations on taxes, economic development, transportation and higher education. Federal Reserve Bank of Chicago economist Bill Strauss will provide an economic outlook.
Read NCSL's summary on the background and passage of the Minnesota 2007 transportation bill, which includes a gas tax increase, targeted and optional sales tax increases, restrictions on tolling and public-private partnerships and a bridge improvement program.
The most recent issue of NCSL's Capitol-to-Capitol reminds legislators who wish to comment on U.S. Department of Education regulations that would modify various No Child Left Behind Act implementation issues that they have 17 more days to submit comments. Also, the Senate (48-45) and the House (214-210) narrowly approved the FY 2009 budget resolution, S. Con. Res. 70. Passage of the $3 trillion budget resolution, which does not require presidential approval, gives the green light to appropriators to initiate markups of the 12 annual appropriations bills. However, states should not count on appropriations work concluding this calendar year.
California--In its alternative to the governor's May revision of the FY 2008-09 budget bill, the Legislative Analyst's Office reports a budget shortfall of $15 billion. The LAO alternative budget, which remains balanced through the forecast period, reflects the state’s worsening fiscal situation.
Connecticut--The Office of Legislative Research recently published a study of the potential effects of adopting a state earned income tax credit, including a summary of existing state EITCs.
Wisconsin--The Wisconsin Legislative Audit Bureau recently completed a review of the Wisconsin Arts Board and focused its audit on the board's fiscal operations.
The April 16 Federal Reserve Beige Book characterized consumer spending as softening across most of the country, with some federal reserve districts reporting year-over-year declines in retail and/or auto sales. In contrast, tourism was generally described as strong, with a number of districts noting particular strength in foreign visitors.
A recent report from the National Health Policy Forum provides an overview on the role of the 56 state agencies on aging and other service providers that are part of the aging services network. The aging services network administers the Older Americans Act funding as well several other federal programs, including Medicaid and the Social Services Block Grant.
A recent brief from the American Petroleum Institute ranks gasoline and diesel fuel excise tax rates for the 50 states. The research brief notes that the average gasoline excise tax rate in 2008 is 18.2 cents per gallon, the same as in 2007. The report also shows that states add another 10.4 cents per gallon on average in the form of applicable sales taxes, gross receipts taxes, and other miscellaneous environmental fees.
According to the Conference Board, the Consumer Confidence Index dropped to its lowest level in almost 16 years as consumers dealt with soaring gas prices and weakening job prospects in May. The index stood at 57.2 in May, down from a revised 62.8 in April. The reading has dropped for the fifth straight month and is now at its lowest point since it registered 54.6 in October 1992 when the economy was coming out of a recession.
The Council On State Taxation recently released a new report, “Understanding the Revenue and Competitive Effects of Combined Reporting." The study suggests that combined reporting is not a panacea for addressing how accurately to determine multistate business income attributable to economic activity in a state. The report finds that for business taxpayers, there is a risk that combined reporting will attribute more income to a state than is justified by the level of a corporation's real economic activity in the state.
The Tax Policy Center of the Urban Institute and Brookings Institution discusses taxpayer eligibility for traditional and Roth IRAs.
The Governmental Accounting Standards Board's Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions (OPEB), will require that the cost of “other postemployment benefits" be recognized sooner (as promised benefits are being earned) rather than later (when promised benefits are actually paid). The Government Finance Officers Association has designed an online toolkit as a resource for OPEB decision making to help government officials understand the questions to ask and the decisions that need to be made.
The new American Association of Retired Persons Public Policy Institute's biennial databook features state-level data on population, poverty rates, per capita state personal income, state and local revenues, expenditures, tax rates, and property tax relief programs. Gender and age comparisons are provided for some of the data. Tables and maps of selected data are included.
As part of its assessment of overall state government performance, the Pew Center on the States’ Government Performance Project and Public Safety Performance Project teamed up to interview a wide cross section of officials from 45 state corrections departments about innovative and effective management practices. This report highlights strategies currently under way to strengthen prison operations, cut crime and tame spiraling prison costs.
The FTA Revenue Estimating and Tax Research Conference will be held Sept. 14-17, 2008, in Portland, Maine.
If you would like to be added to the distribution list for the Fiscal Link, or know a legislator or legislative staff person who should be added, just ask Lisa Houlihan.
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Last updated: 6 June 2008.
Page maintained by Lisa Houlihan and the Fiscal Affairs Program, NCSL, Denver, Colorado.
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