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.
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.
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.
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...
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...
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...
To help analysts craft next year’s state budgets, and to help reporters explain them and the public understand them, we compiled the Urban Institute’s and the Tax Policy Center’s best state-focused research in one place. The research in this compendium will help analysts better evaluate agency...
A longstanding concern of state and local governments is that a federal value-added tax (VAT) could severely limit their reliance on sales taxes as a major source of revenue. This concern is too narrowly focused; a federal VAT could affect revenues from other sources and spending more than sales...
Every year, the Urban Institute produces hundreds of reports, briefs, webcasts, and blog posts. In this publication, Urban’s State and Local Finance Initiative brings together the latest evidence-based research, data, and solutions with direct relevance for analysts crafting and deliberating...