New Perspectives on State Government Fiscal Challenges

Barry W. Poulson is emeritus professor of economics at the University of Colorado.John Merrifield is head of the Institute for Objective Policy Assessment and was a member of the faculty at the University of Texas at San Antonio for 32 years.

• Part I State Debt and Fiscal StabilizationChapter 1 State Debt and Liabilities: A Holistic ApproachChapter 2 U.S. State Debt Defaults and Constitutional Reform in Historical PerspectiveChapter 3 Pension Liability Stress for State GovernmentsChapter 4 Preparing State Finances for a Time of CrisisChapter 5 Debt Fatigue in the States: Red States, Blue States, and Zombie StatesPart II State Fiscal InstitutionsChapter 6 Budget Stabilization FundsChapter 7 Anti-Aid Provisions in State ConstitutionsChapter 8 Competition, Networks, and Public-Private Partnerships: Contributions to State GovernanceChapter 9 Extending Zero-Based Budgeting to Zero-Based RegulationPart III Fiscal FederalismChapter 10 Government Growth, Institutional Erosion, and the Fiscal Squeeze: Nebraska as a Case StudyChapter 11 Fiscal Federalism and State BudgetingChapter 12 Give People a Vote That Counts, and They Will Vote for Fiscal ResponsibilityChapter 13 Florida’s Fiscal Conservatism

The 13 essays in this volume focus on constraining state and local fiscal policy. The authors tend to have some connection to George Mason University, the American Legislative Exchange Council, or the Cato Institute. Although the contributions as a whole possess strong doctrinal conformity, this is leavened with historical context and case studies to present a somewhat broader view of state and local public finance. The first part of the collection is devoted to state debt and fiscal stability. State liabilities, including responsibility for infrastructure, pensions, and accumulating debt, are evaluated in the context of defaults during the 19th and 20th centuries. Rainy day funds and debt brakes are suggested to improve stability. The second section, dealing with fiscal institutions, contends with public-private business ventures as well as budgeting and stability issues. Zero-based regulation is recommended, keeping with efforts to attain zero-based budgeting. The final section critiques fiscal federalism, deprecating federal aid to state and local governments for a variety of reasons. A preferable fiscal federalism, one contributor suggests, would be to reverse revenue sharing, reminiscent of 18th-century federal funding under the Articles of Confederation. Recommended. Graduate students.