Fiscal & Economic Policy

Many state retirement systems are on an unsustainable course, coming up short on their investment targets and having failed to set aside enough money to fund the pension promises made to public employees. Even as contributions from taxpayers over the past decade doubled as a share of state revenue, the total still fell short of what is needed to improve the funding situation. Read More

As state and local governments continue to face significant budgetary constraints, policymakers want to be surethey are making the best use of limited taxpayer dollars. Yet these leaders must frequently make budget and policydecisions without important information about the effectiveness of the programs they fund. To help address thischallenge, the Pew-MacArthur Results First Initiative provides... Read More

The health care that prisons provide affects more than simply the well-being of incarcerated people. Inadequate treatment for infectious diseases and behavioral health conditions, for example, can undermine efforts to strengthen public health and safety in the communities to which individuals return. Assessments of what taxpayers are getting for their prison health care dollars and how that... Read More

The tax law passed by Congress in 2017 placed a $10,000 cap on the state and local tax (SALT) deduction, which allows filers who itemize to subtract state and local property and sales or income taxes from their federal taxable income. Policymakers across the country are examining this new cap’s potential impact on states, but much of that attention has concentrated on a handful of coastal... Read More

The U.S. government spends defense dollars in every state through purchases of military equipment, wages for service members and civilians, pension payments, health care services, and grants to states. But the size and mix of those investments varies substantially across the states, so changes in defense spending will affect them differently, and the impacts will depend on which programs and... Read More

Many state retirement systems are on an unsustainable course, coming up short on their investment targets and having failed to set aside enough money to fund the pension promises made to public employees. Even as contributions from taxpayers over the past decade doubled as a share of state revenue, the total still fell short of what is needed to improve the funding situation. Read More

As state and local governments continue to face significant budgetary constraints, policymakers want to be surethey are making the best use of limited taxpayer dollars. Yet these leaders must frequently make budget and policydecisions without important information about the effectiveness of the programs they fund. To help address thischallenge, the Pew-MacArthur Results First Initiative provides... Read More

The health care that prisons provide affects more than simply the well-being of incarcerated people. Inadequate treatment for infectious diseases and behavioral health conditions, for example, can undermine efforts to strengthen public health and safety in the communities to which individuals return. Assessments of what taxpayers are getting for their prison health care dollars and how that... Read More

The tax law passed by Congress in 2017 placed a $10,000 cap on the state and local tax (SALT) deduction, which allows filers who itemize to subtract state and local property and sales or income taxes from their federal taxable income. Policymakers across the country are examining this new cap’s potential impact on states, but much of that attention has concentrated on a handful of coastal... Read More

The U.S. government spends defense dollars in every state through purchases of military equipment, wages for service members and civilians, pension payments, health care services, and grants to states. But the size and mix of those investments varies substantially across the states, so changes in defense spending will affect them differently, and the impacts will depend on which programs and... Read More

A new report by The Pew Charitable Trusts examines the pension reforms that helped Detroit emerge from bankruptcy in 2014 and suggests ways in which the city can strengthen its retirement plans for general employees and public safety workers. Read More

Now that last year’s tax overhaul is the law of the land, its impact is spilling out beyond the nation’s capital to state governments. While the law is certain to affect state finances, the details are complicated and vary by state, and the effect on any given state remains to be seen. To help clarify this tangled set of issues, here are two key considerations for states as they take... Read More

From the White House to state houses to city halls, policymakers agree the nation needs greater infrastructure investment. What’s less clear is the most strategic and cost-effective way to pay for these investments. Read More

Tennessee Governor Bill Haslam (R) is a national leader in leveraging evidence-based policies to sustain the state’s strong fiscal position, foster economic growth, and improve government efficiency. Over the governor’s seven years in office, he has created jobs, tripled Tennessee’s rainy day fund, decreased the state’s debt, and invested in education. This year, Gov.... Read More

An estimated 1 million workers in Oregon do not have a retirement plan at their job, and many others do not have adequate retirement savings. Oregon is responding to these challenges with a significant effort to address retirement insecurity: a program called OregonSaves, designed to provide every working Oregonian access to a private retirement account. Read More

How can states use data to make government work better? Known as a national leader for his efforts to make state government more efficient, Tennessee Governor Bill Haslam shares what he’s learned over two terms about tripling the state’s rainy day fund, creating jobs, reforming the state’s juvenile justice system, and more. In this episode, we hear from the governor on how he... Read More

Fiscal 50: State Trends and Analysis, an interactive resource from The Pew Charitable Trusts, allows you to sort and analyze data on key fiscal, economic, and demographic trends in the 50 states and understand their impact on states’ fiscal health. Read More

This interactive map highlights the state distribution of several federal tax deductions and credits. Read More

Taxes and federal funds together account for 81 percent of revenue for the 50 states. Taxes are the largest revenue source in 46 states, while federal funds are greatest in three. But neither is the primary contributor to government coffers in one state: Alaska. This infographic displays a breakdown of each state's revenue, by major categories. Read More

Taxes make up about half of state government revenue, with the bulk coming from levies on personal income and general sales of goods and services. Broad-based personal income taxes are the greatest source of tax dollars in 28 of the 41 states that impose them, with the highest share—69.6 percent—in Oregon. General sales taxes are the largest source in 17 of the 45... Read More