Fiscal Policy

State and Local Finance

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U.S. state governments are facing budgetary shortfalls that threaten important public services and state employee pensions. From New York to Texas to California, states across the country must deal with revenue and spending imbalances, forcing governments to make hard choices on how to meet basic needs. Brookings experts examine the problems and offer recommendations on how states can close their budget gaps.

REUTERS/Rebecca Cook - A 'Welcome to Detroit' border sign is seen as traffic enters Detroit, Michigan August 3, 2013

Opinion

State and Local Government Deficits Soar. Are Others Following Detroit's Footsteps?

August 9, 2013, Tracy Gordon

The "net savings" of state and local governments fell from a deficit of $129 billion to a deficit of $252.7 billion in the latest figures released by the Bureau of Economic Analysis. Tracy Gordon explains why this revised methodology is more accurate than others in showing how much state and local governments owe, which suggests that cities and states are underestimating their pension obligations.

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State and Local Finance

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