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The last few decades have presented a new set of challenges and opportunities for public finances. Demographic trends have put substantial pressure on non-discretionary public expenditures such as health care, while legal challenges have put pressure on education financing. The author illustrates how these national trends have also impacted state and local finances – some directly, others indirectly. The economic downturn further constrains state and local governments’ options for dealing with national trends. Constituents’ sentiment toward the size of government further exacerbates fiscal choices for state and local governments.In this broad and illuminating volume, experts on public finance discuss innovations in state and local tax policy implemented or considered over the course of the last three decades. The authors provide original work that analyzes whether state and local governments have ‘gone outside the box’ to deal with the strains of current public finances or have gotten along by adhering to the status quo. Well-known scholars in the area of state and local public finance consider actual practices and analyze potential policy changes for the future.Public policy and public finance scholars and students as well as policy makers will find much of interest in this impressive and original collection.
Edited by Sally Wallace, Executive Director, Ernst&Young, USA
Contents:PART I: THE PERFECT STORM?1. Introduction and OverviewSally Wallace2. Major State–Local Policy Challenges: Outside-the-Box Solutions NeededRonald C. Fisher3. Genesis of State–Local CreativityRobert Tannenwald, Jennifer Weiner and Igor PopovDiscussant Comments: Mary Mathewes KassisDiscussant Comments: Jason S. SeligmanPART II: HOW STATES COPE WITH ALTERNATIVE STRUCTURES4. Going Without an Income Tax: How do States do it?David L. Sjoquist5. California’s State and Local Revenue Structure After Proposition 13: Is Denial the Appropriate Way to Cope?Robert W. WassmerDiscussant Comments: Don BrucePART III: NEW FORMS OF TAXATION6. An Exploration of Various Corporate Tax Structures in Georgia: Some Effects of Moving from Three-Factor Apportionment of Corporate Income to a Gross Receipts TaxJonathan Rork and Laura Wheeler7. Can Georgia Move from Income Tax to Consumption Tax?Sally WallaceDiscussant Comments: William J. SmithPART IV: EVALUATING STATE AND LOCAL GOVERNMENT FINANCES AND BUDGETING8. Reaching and Maintaining Structural Balance: Leaders in the StatesKatherine Willoughby9. Fiscal Limitations on Local Choice: The Imposition and Effects of Local Government Tax and Expenditure LimitationsDaniel R. MullinsDiscussant Comments: Kurt ThurmaierOut-of-the-Box Conference: An EpilogueBert WaisanenIndex