Brief Biting the Budget Bullet
Why Raising Taxes is the Least Painful Way out of the State's Fiscal Crisis
Peter Orszag, Joseph E. Stiglitz
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[Boston Globe] Like Massachusetts, state governments across the nation are facing budget deficits of historic proportions. Next year, they will face combined projected shortfalls of between $70 billion and $85 billionor about 15 percent of all the money they spend out of their general funds. In response, they are cutting back on vital services, curtailing school hours, and restricting access to Medicaid, as well as raising tuition at public universities and increasing taxes. Kentucky is releasing non-violent prisoners early to reduce costs. Missouri has even resorted to unscrewing every third lightbulb in state buildings to save on electricity.
Research Areas Education Taxes and budgets
Tags School funding State and local tax issues Federal budget and economy