We’re Not Alone… How Other U.S. States Are Dealing with Deficits

We have all been learning a lot about our state budget recently. For one thing, like other U.S. States (but unlike our Federal government), Massachusetts is not allowed to run a run state deficit. This means we must raise additional revenues, make cuts, or do a combination of the two.

But we’re not alone in this process.

NPR aired an interesting piece a couple of weeks back on the revenue reforms taking place across out country, based on more detailed research by the National Conference of State Legislatures.

A few examples include:

• Connecticut - Lawmakers have proposed the institution of a graduated personal income tax
• Florida - Senate Finance Committee passed legislation what would repeal numerous sales tax exemptions, including the partial (50%) exemption for materials, tools, fuel, machinery and equipment used in manufacturing tangible personal property
• Illinois - Governor has proposed increasing the corporate income tax rate to 7.2% from 4.8%.

Reading through the reforms, I was struck by the number of options being proposed by both legislators and governors, and by the effort that folks nationwide are putting into supporting their own states and local communities.

It obviously takes a lot of work to build – and pass – a plan for an adequate, balanced, and stable revenue structure. What we can learn from the efforts of other states in implementing our own reforms?