The federal-state relationship is in the spotlight because of enormous fiscal challenges facing all levels of government. Tight budgets and a weak recovery in the wake of the Great Recession are leading to discussions about appropriate amounts of public spending and how costs should be allocated among local, state, and national government. Federal and state policy makers require solid data and analysis to engage in a meaningful debate and truly understand how their tax and spending policies affect other levels of government.
Our WorkView All
Federal and state policymakers are often working on similar policy challenges from different vantage points. And when they do not coordinate their decision-making, what may start as a promising response to a major public need can end up being difficult to implement, unsustainable, and in some cases counterproductive. Read More
Of the 41 states plus the District of Columbia with broad-based personal income taxes, 40 and the District link to the federal tax system by incorporating a range of federal tax expenditures—exclusions, deductions, and credits—into their tax codes. Read More
Of the $3.5 trillion spent by the federal government in fiscal year 2014, 93 percent was spent in the states. These dollars pay for Social Security, Medicaid, the salaries of federal employees, and other expenditures. When policymakers in Washington decide where to direct federal money, they should bear in mind the effects that changes in federal spending have on state economies—and... Read More