1,797 research outputs found

    Fiscal Policy Report Card on America's Governors: 2008

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    Revenue poured into state governments as the U.S. economy expanded between 2003 and 2007, prompting the nation's governors to expand state budgets and offer the occasional tax cut. But now that the economy has slowed and revenue growth is down, governors are taking various actions to close rising budget deficits. This ninth biennial fiscal report card examines the tax and spending decisions made by the governors since 2003. It uses statistical data to grade the governors on their taxing and spending records -- governors who have cut taxes and spending the most receive the highest grades, while those who have increased taxes and spending the most receive the lowest grades. Three governors were awarded an "A" in this report card -- Charlie Crist of Florida, Mark Sanford of South Carolina, and Joe Manchin of West Virginia. Eight governors were awarded an "F" -- Martin O'Malley of Maryland, Ted Kulongoski of Oregon, Rod Blagojevich of Illinois, Chet Culver of Iowa, Jon Corzine of New Jersey, Bob Riley of Alabama, Jodi Rell of Connecticut, and C. L. "Butch" Otter of Idaho. Republican governors, on average, received slightly higher grades than Democratic governors. More importantly, there has been a disappointing lack of major spending reforms among governors of both parties in recent years. State tax policies have also been uninspiring. Most tax cuts pursued by the governors have been small and targeted breaks, not broad-based rate cuts that can foster economic growth. Fiscal policies need to be improved if the states are to meet the huge challenges ahead. Medicaid costs continue to rise, state debt is soaring, and the pension and health care plans of state workers have huge funding gaps. At the same time, rising international tax competition makes it imperative that states cut tax rates to attract jobs and investment. Governors don't have an easy job, but they do need to pursue more aggressive fiscal reforms to meet the challenges of an increasingly competitive economy

    Federal Aid to the States: Historical Cause of Government Growth and Bureaucracy

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    In recent years, members of Congress have inserted thousands of pork-barrel spending projects into bills to reward interests in their home states. But such parochial pork is only a small part of a broader problem of rising federal spending on traditionally state and local activities. Federal spending on aid to the states increased from 286billioninfiscal2000toanestimated286 billion in fiscal 2000 to an estimated 449 billion in fiscal 2007 and is the third-largest item in the federal budget after Social Security and national defense. The number of different aid programs for the states soared from 463 in 1990, to 653 in 2000, to 814 by 2006. The theory behind aid to the states is that federal policymakers can design and operate programs in the national interest to efficiently solve local problems. In practice, most federal politicians are not inclined to pursue broad, national goals; they are consumed by the competitive scramble to secure subsidies for their states. At the same time, federal aid stimulates overspending by the states, requires large bureaucracies to administer, and comes with a web of complex regulations that limit state flexibility. At all levels of the aid system, the focus is on spending and regulations, not on delivering quality services. And by involving all levels of government in just about every policy area, the aid system creates a lack of accountability. When every government is responsible for an activity, no government is responsible, as was evident in the aftermath of Hurricane Katrina. The failings of federal aid have long been recognized, but reforms and cuts have not been pursued for years. Aid has spawned a web of interlocking interests that block reform, including elected officials at three levels of government, armies of government employees, and thousands of trade associations representing the recipients of aid. Yet the system desperately needs to be scaled back, not least because the rising costs of federal programs for the elderly are putting a squeeze on the federal budget. To help spur reform, this study examines the historical growth of the aid system and describes its failings. Congress should reconsider the need for aid and begin terminating activities that could be better performed by state and local governments and the private sector

    Farm Subsidies at Record Levels As Congress Considers New Farm Bill

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    After six decades of rising subsidy levels and expansive regulatory controls, it appeared that Washington's role in agriculture would be reduced with the enactment of the 1996 Federal Agriculture Improvement and Reform Act. That act aimed to decrease subsidies over seven years and to move farming toward greater reliance on market supply and demand. Unfortunately, that promise collapsed in an orgy of supplemental spending bills that have increased federal farm subsidies to all-time highs. Total direct subsidy payments to farmers have soared to more than 20billionperyearthepastthreeyears,upfromanaverageof20 billion per year the past three years, up from an average of 9 billion per year in the early 1990s. There is little justification for the special hold that the agricultural industry has on tax-payers' wallets. Other industries, such as the high-tech industry, are also risky and subject to large price swings but do not receive large-scale government subsidies. Moreover, farm households have higher incomes, on average, than do nonfarm U.S. households, and subsidies are skewed toward the largest and wealthiest farm businesses. Farm subsidies also subvert their own goal: farmers demand subsidies because of low market prices for their products, but subsidies themselves contribute to lower prices. As Congress works to reauthorize farm programs, it threatens to move further away from reform by institutionalizing high levels of farm welfare. Instead, Congress should push the farm sector back into the market economy by repealing federal farm subsidies

    10 Reasons to Oppose Virginia Sales Tax Increases

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    Northern and southeastern Virginians will vote in referenda this November to approve or reject increases in the retail sales tax to fund transportation projects. Northern Virginians will decide whether to increase the sales tax from 4.5 percent to 5.0 percent, an 11 percent increase. Virginians in the Hampton Roads area will decide whether to increase the sales tax from 4.5 percent to 5.5 percent, a 22 percent increase. Proponents of tax increases point to unmet transportation needs to support their cause. Yet state spending increased 13 percent in 1999, 7 percent in 2000, and 9 percent in 2001. If key transportation needs have not been met, the problem is not a lack of funds but legislators who have not properly prioritized the budget. If the sales tax referenda are passed, the state government will have a strong incentive to reduce what it would otherwise spend on transportation in northern Virginia and Hampton Roads. By some measures, northern Virginia already gets the short end of the stick with regard to the state budget. Tax increases are not just bad budget policy; they are also bad economic policy. Since higher taxes reduce economic growth, an added cost of higher sales taxes would be lower incomes for Virginians. During the 1990s Virginia taxes grew faster than incomes, and local property taxes have soared recently. Even modest restraint in nontransportation spending could save enough money to fund priority highway projects without tax increases. Further, the state could adopt a spending growth cap that channels excess future tax revenues to transportation needs and tax cuts

    States Face Fiscal Crunch after 1990s Spending Surge

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    Across the nation, large budget gaps are forcing state governments to make tough policy choices. While some states are trying to control spending, others are turning to tax increases to balance their budgets. Some state officials are trying to pass the buck for their poor fiscal management by pleading for a bailout from Washington. But a bailout would encourage states to continue overspending, which is the source of the current fiscal mess. The states' mistake was to allow rapid tax revenue growth during the 1990s to fuel an unsustainable expansion in spending. Between fiscal years 1990 and 2001, state tax revenue grew 86 percent--more than the 55 percent of inflation plus population growth. If states had limited spending growth to that benchmark, budgets would have been $93 billion smaller by FY01--representing savings roughly twice the size of today's state budget gaps. If revenue growth higher than the benchmark had been given back to taxpayers in permanent tax cuts and annual rebates, rebates could have been temporarily suspended during FY02 and FY03 to provide a cushion with which to balance state budgets. Current budget gaps provide policymakers an opportunity to weed out the budget excesses built up during the past decade. Yet overall state spending continues to grow. After soaring 8.0 percent in FY01, state general fund spending has not been cut in FY02 or FY03 even as large budget gaps have appeared. States should impose tax and spending growth caps to prevent budgets from growing too quickly during the next boom. Revenue growth above a benchmark would be given back in tax cuts and tax rebates. That would prevent spending from increasing too quickly and provide the option of suspending rebates during slowdowns to close budget gaps without the damage caused by tax rate increases

    QUAL : A Provenance-Aware Quality Model

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    The research described here is supported by the award made by the RCUK Digital Economy program to the dot.rural Digital Economy Hub; award reference: EP/G066051/1.Peer reviewedPostprin

    Assessing the Quality of Semantic Sensor Data

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    Acknowledgements The research described here is supported by the award made by the RCUK Digital Economy programme to the dot.rural Digital Economy Hub; award reference: EP/G066051/1.Publisher PD
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