Do Budget Maneuvers Reduce Future State Budget Resilience? Evidence from the Great Recession

2021 ◽  
Author(s):  
John Stavick
Keyword(s):  
Great Recession ◽  
State Budget ◽  
The Great Recession ◽  
Future State

State budget shortfalls and budget balancing strategies during and after the great recession of 2008

2016 ◽  
Vol 28 (1) ◽  
pp. 26-47 ◽  
Author(s):  
Yu Shi
Keyword(s):  
New York ◽  
Great Recession ◽  
State Governments ◽  
Federal Aid ◽  
State Budget ◽  
The Great Recession ◽  
Budget Balancing ◽  
Using Data ◽  
Revenue Enhancement ◽  
Budget Shortfalls

This paper investigates how state governments used budget balancing strategies to cope with budget shortfalls in the fiscal years between 2009 and 2013. Using data from the Fiscal Survey reports and Comprehensive Annual Financial Statements (CAFRs) covering all fifty states, the paper summarizes and analyzes several types of strategies such as state savings, federal aid, revenue enhancement and expenditure cutting in response to budget shortfalls during and after the Great Recession of 2008. In addition, findings from the three case studies in New York, Texas and Washington show distinct patterns in these states’ choices of balancing strategies to cope with budget shortfalls. New York adopted a more balanced approach between revenue increasing and expenditure cutting strategies, whereas Washington and Texas implemented more severe expenditure cutting strategies to address budget shortfalls.

Expanding Enrollments and Contracting State Budgets

2013 ◽  
Vol 650 (1) ◽  
pp. 168-193 ◽  
Author(s):  
Andrew Barr ◽  
Sarah E. Turner
Keyword(s):  
Postsecondary Education ◽  
Great Recession ◽  
The United States ◽  
Pell Grant ◽  
State Budget ◽  
Cost Shifting ◽  
The Great Recession ◽  
Budget Support ◽  
State Budgets ◽  
Student Demand

The Great Recession heightened a growing conflict in the United States between expanding enrollments in postsecondary education and contracting public budget support. Weak labor market conditions during the Great Recession encouraged college enrollments, with much of the increase in enrollment occurring outside the most selective institutions. While federal aid policies, including the Pell grant, became more generous, dramatic reductions in state budget allocations made it difficult for colleges and universities to maintain programming and accommodate student demand. As a result, the Great Recession has accelerated the cost-shifting from public subsidies to individual payments in higher education.

State Fiscal Policy during the Great Recession

2013 ◽  
Vol 650 (1) ◽  
pp. 252-273 ◽  
Author(s):  
Andrea Louise Campbell ◽  
Michael W. Sances
Keyword(s):  
Great Recession ◽  
Personal Income ◽  
Social Program ◽  
Economic Downturn ◽  
State Budget ◽  
Political Factors ◽  
The Great Recession ◽  
Original Analysis ◽  
Public Sector Unions ◽  
Home Values

Plunging tax revenues and soaring social program demand during the Great Recession created state budget shortfalls of historic magnitude. After reviewing states’ aggregate reaction to the economic downturn, we conduct an original analysis of the recession’s budgetary impact on the states and their policy responses. Economic factors such as falling personal income and home values explain much of the variation in the recession’s impact. State budgeting rules and practices conditioned states’ experiences, but not always as intended: budget gaps were smaller in states with stricter balanced budget requirements, but larger in states with statutory spending limitations. Personal income tax increases were more likely in states with a Democratic legislature or greater public unionization rates, while midyear spending cuts were smaller in states with larger public sector unions. In sum, we find that while states’ objective economic situations determined the bulk of their responses to the Great Recession, political factors determined these responses’ shape and form.

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