The Tax Cut and Jobs Act (TCJA) will reduce individual income taxes on average for all income groups and in all states. Unlike prior Tax Policy Center reports, this analysis focuses on the distribution of the individual income tax changes, and does not include changes in the corporate income tax...
To respond effectively to state and federal policy changes, city leaders, non-profit service providers, advocates, and researchers all need accurate data on how federal funds flow to local governments. Unfortunately, those data are spread across multiple sources that are often indecipherable or...
Debt limits are provisions that limit a state’s ability to take on new debt or debt service. This fact sheet describes the different rules that states use to limit debt and reviews evidence on how debt limits affect fiscal outcomes.
Although most states produce a budget annually, 20 states produce a budget every other year for the upcoming two fiscal years, or biennially. This fact sheet describes the budget process and reviews the evidence on how annual and biennial budgeting, as well as the line item veto, affect fiscal...
Supermajority budget rules require a state to obtain more than a majority vote of the legislature, typically two-thirds or three-fifths of the votes, to pass a budget bill. This fact sheet reviews evidence on how supermajority budget rules affect fiscal outcomes, such as late budgets and...
Fluctuations in state revenue, especially unexpected ones, can compromise state services and contribute to overall fiscal instability. This fact sheet discusses the causes of state revenue volatility and how state tax and budget policy can either contribute to, or mitigate, it.
States use different methods to estimate how much revenue they will have available to spend in future years. This fact sheet describes different approaches to revenue forecasting and presents recommendations on how to improve forecasting accuracy and transparency.
Budget stabilization funds (BSFs), also known as rainy day funds, allow states to set aside surplus revenue for times of unexpected revenue shortfall or budget deficit. This fact sheet describes how BSF rules vary across states and reviews evidence on how they affect savings and volatility.
Tax and expenditure limits (TELs) are self-imposed restrictions that state governments create to restrict the amount they can tax or spend. This fact sheet describes how TELs vary across states and discusses evidence on whether TELs achieve their objective of restraining government growth.
Balanced budget requirements (BBRs) prohibit states from spending more than they collect in revenue. This fact sheet describes how BBRs vary in stringency and design and reviews evidence on whether stricter antideficit provisions produce “tighter” state fiscal outcomes, such as reduced spending...
The Effect of The TCJA Individual Income Tax Provisions Across Income Groups and Across the States
The Tax Cut and Jobs Act (TCJA) will reduce individual income taxes on average for all income groups and in all states. Unlike prior Tax Policy Center reports, this analysis focuses on the distribution of the individual income tax changes, and does not include changes in the corporate income tax...
Follow the Money: How to Track Federal Funding to Local Governments
To respond effectively to state and federal policy changes, city leaders, non-profit service providers, advocates, and researchers all need accurate data on how federal funds flow to local governments. Unfortunately, those data are spread across multiple sources that are often indecipherable or...
Debt Limits
Debt limits are provisions that limit a state’s ability to take on new debt or debt service. This fact sheet describes the different rules that states use to limit debt and reviews evidence on how debt limits affect fiscal outcomes.
The Budget Cycle and Line-Item Veto
Although most states produce a budget annually, 20 states produce a budget every other year for the upcoming two fiscal years, or biennially. This fact sheet describes the budget process and reviews the evidence on how annual and biennial budgeting, as well as the line item veto, affect fiscal...
Supermajority Budget and Tax Rules
Supermajority budget rules require a state to obtain more than a majority vote of the legislature, typically two-thirds or three-fifths of the votes, to pass a budget bill. This fact sheet reviews evidence on how supermajority budget rules affect fiscal outcomes, such as late budgets and...
Revenue Volatility
Fluctuations in state revenue, especially unexpected ones, can compromise state services and contribute to overall fiscal instability. This fact sheet discusses the causes of state revenue volatility and how state tax and budget policy can either contribute to, or mitigate, it.
Revenue Forecasting Practices
States use different methods to estimate how much revenue they will have available to spend in future years. This fact sheet describes different approaches to revenue forecasting and presents recommendations on how to improve forecasting accuracy and transparency.
Budget Stabilization Funds
Budget stabilization funds (BSFs), also known as rainy day funds, allow states to set aside surplus revenue for times of unexpected revenue shortfall or budget deficit. This fact sheet describes how BSF rules vary across states and reviews evidence on how they affect savings and volatility.
Tax and Expenditure Limits
Tax and expenditure limits (TELs) are self-imposed restrictions that state governments create to restrict the amount they can tax or spend. This fact sheet describes how TELs vary across states and discusses evidence on whether TELs achieve their objective of restraining government growth.
Balanced Budget Requirements
Balanced budget requirements (BBRs) prohibit states from spending more than they collect in revenue. This fact sheet describes how BBRs vary in stringency and design and reviews evidence on whether stricter antideficit provisions produce “tighter” state fiscal outcomes, such as reduced spending...