What is the outlook for local government revenues in the Tenth District?

Local governments, which rely heavily on property taxes and fund transfers from state governments, continue to struggle with slowing revenues - a situation that is likely to persist over the next few years. As new property tax assessments reflect declines in house prices, local property tax revenues may fall in some areas unless tax rates are increased. In addition, decreases in state revenues have led to a slowdown in state transfers to local governments. ; Felix finds that for this downturn, local government revenues from property taxes and state transfers combined were likely slowest in fiscal year 2011. That weakness may continue for several years, especially if home prices decline further. Despite declines in home prices and state government revenues, projections based on historical experience suggest local governments may avoid outright declines in revenues, in part, because of their ability to raise tax rates to offset declines in property values. However, recent local property tax collections have been lower than projected, hinting that the severity of the recent recession may have led local governments to deviate somewhat from historical trends. ; The outlook for most Tenth District states, however, is somewhat brighter than the rest of the nation. House prices generally have held up better in the district, and after sharp declines in state revenues in fiscal years 2009 and 2010, many Tenth District states are experiencing positive growth. Still, local revenue growth in the region is likely to remain somewhat subdued in the near term.

The growth and volatility of state tax revenue sources in the Tenth District

With the sluggishness in the national economy in 2008, many state governments are projecting budget shortfalls for the 2009 fiscal year. This trend is a concern to policymakers, as the health of a state's tax revenues is important to its economic growth and its ability to finance the public services that residents demand. State governments provide physical infrastructure, educate the future workforce, and protect people and property. In addition, in the Tenth Federal Reserve District, state and local governments employ over 16 percent of the workforce. ; While a number of factors influence the growth and volatility of state tax revenues, one key determinant is the composition of each state's tax portfolio. Governments desire a portfolio of tax instruments that allows for revenues to grow with the economy so that spending demands can be met without much change in tax rates. At the same time, stability in the revenue stream is important so that governments are not left with large financing constraints during downturns. ; Felix analyzes the impact of portfolio composition on the growth and stability of state tax revenues, particularly in the states that make up the Tenth District. She uses long-run and short-run elasticity estimates to analyze the growth and stability of each tax instrument and discusses implications for Tenth District states.

The incidence of capital taxation and the magnitude of its burden.

Capital ; Taxation

Do state corporate income taxes reduce wages?

Amid falling revenues and impending budget shortfalls, state policymakers must find ways to increase revenue, cut spending, or both. At the same time, they must develop policies that attract or keep businesses and jobs. Some policymakers may consider raising corporate tax rates because it avoids directly taxing workers who are already suffering the effects of this recession. But as states reevaluate their current tax policy, it is important to consider the effects of each tax component. One important question is: Who will bear the burden of the taxes? ; State corporate income taxes are complex, and thus the answer to this question is far from obvious. Many believe that the state corporate tax structure is highly progressive because the corporate capital taxed is owned disproportionately by wealthy individuals. In today's economy, however, the burden of the corporate tax may have shifted to consumers or labor, resulting in a less progressive tax structure. ; Research has shown that in some cases labor bears a substantial weight of the corporate tax. While this burden has fluctuated over time, the relationship between corporate taxes and wages has been consistently negative. In other words, higher corporate taxes are typically associated with lower wages. ; Felix examines the impact of state corporate taxes on wages. She shows that corporate taxes reduce wages and that the magnitude of the negative relationship between the taxes and wages has increased over the past 30 years. She also finds that state corporate taxes have a larger negative effect on more highly educated workers.

The importance of community colleges to the Tenth District economy

The recent recession and now the recovery have caused enrollment at many community colleges to soar as unemployed workers retrain for new occupations and students who might otherwise attend a four-year college choose to save money. In the Tenth District, the importance of community colleges is likely to rise even further as the economy continues to evolve and industries demand workers with new skills. ; Labor market projections over the next decade suggest that new jobs in the district will be filled more by workers with an associate’s degree or some college than by those with any other type of education. In the short run, with state and local government funding still falling, many community colleges will be challenged to educate a growing number of students. In the long run, evolving industries will likely further challenge community colleges to produce even more workers with newer skills--both nationwide and in the Tenth District. ; Felix and Pope describe how community colleges contribute to economic development in the Tenth District and the challenges they face in economic downturns. They then examine the implications of long-run job projections in district states for the demand for community colleges graduates--and whether the states’ current level of provision of community college education appears adequate.

Rural America's fiscal challenge

Fiscal challenges at state and local governments are a potential threat to the economic recovery in rural America. Rural communities depend heavily on intergovernmental transfers from the states to provide local services. Many people in rural communities rely on the state or local government for their jobs and on Medicaid as part of their income. Thus, rural economies are highly susceptible to state budget shortfalls. As state governments cut spending in response to looming budget deficits in coming years, rural America's fiscal problems may also deepen.

An investigation into the perceptions of internal and external career barriers amongst female South African police officers in the Western Cape

Includes bibliographical references (leaves 134-145).This research explores the perceptions of internal and external career barriers from the perspective of female South African police officers in the Western Cape. This research is primarily informed by Swanson and Woitke's (1997) translation of career assessment theory into practice for women; Swanson, Daniels and Tokar's (1996) focus on the perceptions of career-related barriers and Bandura's (1977, 1986, 1988, 1995 & 1997) research findings that relate to the construct of self-efficacy and beliefs that individuals hold about their own capabilities. The research provides an overview of Career Development theories

Who offers tax-based business development incentives?

Many American communities seek to attract or retain businesses with tax abatements, tax credits, or tax increment financing of infrastructure projects (TIFs). The evidence for 1999 indicates that communities are most likely to offer one or more of these business development incentives if their residents have low incomes, if they are located close to state borders, and if their states have troubled political cultures. Ten percent greater median household income is associated with a 3.2 percent lower probability of offering incentives; ten percent greater distance from a state border is associated with a 1.0 percent lower probability of offering incentives; and a 10 percent higher rate at which government officials are convicted of federal corruption crimes is associated with a 1.2 percent greater probability of offering business incentives. TIFs are the preferred incentive of communities whose residents have household incomes between $25,000 and$75,000; whereas TIFs are much less commonly offered by communities whose residents have household incomes below $25,000. The need to finance TIFs out of incremental tax revenues may make it infeasible for many of the poorest of communities to use TIFs for local business development.

Passing the burden: corporate tax incidence in open economies

Corporations - Taxation ; Wages