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Research report

Budget Processes and the Great Recession

How State Fiscal Institutions Shape Tax and Spending Decisions

Kim S. Rueben, Megan Randall, Aravind Boddupalli
October 10, 2018
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Abstract

In this study, we explore how strict balanced budget requirements (BBRs) and tax or expenditure limits (TELs) influence states’ decisions to either cut spending or raise revenues in response to surprise deficits and whether this relationship changed following the onset of the Great Recession. We also examine whether Democratic or Republican control of a state legislature and governorship affected state responses. We find that budget processes and party control influenced both the size and the composition of state responses to deficits, with responses tempering in the period during and following the Great Recession.

Research Area

State and Local Issues State and local budgets State and local taxes
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Meet the Experts

  • Kim S. Rueben
    Sol Price Fellow
  • Megan Randall
    Research Associate
  • Aravind Boddupalli
    Research Associate
Research report

New Evidence on The Effect of The TCJA On the Housing Market

Robert McClelland, Livia Mucciolo, Safia Sayed
March 30, 2022
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