View Research by Author - Nicholas Johnson

Publications

States help finance most antipoverty programs, but there's a major flaw in this approach: in recessions, need goes up just as state revenues go down. The resulting budget gaps often lead to significant program cutbacks, even when caseloads are on the rise. Federal assistance during the recent recession helped states meet stepped-up demand, but funding is set to expire and unemployment is expected to remain high. Federal and state governments should repair this financing hitch now to protect antipoverty programs.

State governments help finance most U.S. antipoverty programs. The Great Recession documented the major flaw in this approach: the need for these programs is higher than ever when the ability of state governments to pay for them is at a low point. This analysis examines the factors that constrain states' abilities to maintain critical services and respond to increasing need during a recession. Financing strategies are outlined for the federal government to reduce poverty in the upcoming period of high unemployment, and mechanisms that could be enacted now to provide, automatically, the additional funds needed in the next recession.

Return to list of authors