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Put State Fiscal Policies on Cruise Control |
| Section: CURRENT ISSUES / SPECIAL REPORT--TAXES: HOW MUCH IS ENOUGH? |
| Author: Barry W. Poulson |
| Publication: The world & I online |
| Issue Date: 4/1/2003 |
| Size: 494 Words, 3,049 Characters |
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Over the past two years, most states have fallen off a fiscal cliff. The increased volatility in state revenues has forced states to reconsider their fiscal policies and the rules of the game that govern those policies. In many states, spending cuts have affected basic services such as health, education, and welfare, as well as discretionary spending such as construction. Some s...
. . .
...n fund; it recognizes the trade-off that exists between constraining the growth of state government in line with the growth of the private economy, providing sufficient reserves for the state to meet emergencies such as natural disasters, and stabilizing the state budget in periods of recession. By putting fiscal policy on cruise control, states can stabilize their budgets over the business cycle.
(381 of 3,049 characters)
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