10 research outputs found
Connecticut may finally have a budget by the time this issue goes to press, but we’re not holding our breath. Governor Rell and the legislature are locked in a debate about whether to cut programs or raise taxes. but even a prolonged budget crisis may have an upside if it forces officials to scrutinize spending and taxes and perhaps improve the mix of both. Unfortunately, spending cuts often incur the wrath of special interests, and our analysis here suggests that policymakers may not have much wiggle room to close the budget gap by tinkering with the tax mix.
Is non-federal government in Connecticut too large? Many think so and are happy to see state and local governments scaling back to balance their budgets in the face of a major recession and a drop in tax collections. But is government here as big as the critics contend? And, if so, is this strategically the right time to rein in public spending?