The Federal-State Fiscal Relationship in Times of Recession: Planning Ahead by Looking Back

Policymakers reflected on how coordination across levels of government worked during recent downturns

As the economy continues the longest period of expansion in its history, economists are weighing the likelihood of a downturn. The past two recessions, in 2001 and 2007, significantly affected state revenue, prompting the federal government to provide emergency stimulus funding to help states shore up their budgets. Deploying those resources and ensuring that they served their intended purpose required unprecedented coordination among federal and state agencies, especially during the 2007 recession. Understanding what worked in that collaborative effort can help both levels of government prepare for the next economic contraction.

On Friday, Sept. 13, The Pew Charitable Trusts hosted an event on the importance of federal-state coordination during a recession. The discussion featured remarks from former governors Jim Douglas (R-VT) and Ted Kulongoski (D-OR), preceded by a talk on the economic outlook by economist Mark Zandi.

Agenda

The Next Recession

Mark Zandi, chief economist, Moody’s Analytics (@economics_ma)

Fireside Chat: Lessons Learned During Past Recessions

The Hon. Jim Douglas (R), governor of Vermont, 2003-11; chair of the National Governors Association, 2009-10

The Hon. Ted Kulongoski (D), governor of Oregon, 2003-11

Moderator: Liz Farmer, journalist and fiscal policy expert (@LizFarmerTweets)

Panel: Insights From the Front Lines of the Federal-State Response

Ray Scheppach, director of the National Governors Association, 1983-2011

Ed DeSeve, special adviser to the President for Recovery and Implementation, 2009-11 (@EdDeSeve)

Tom Hanson, commissioner of Minnesota Management and Budget, 2006-10 (@TomHansonMN)

Moderator: Anne Stauffer, director, The Pew Charitable Trusts (@AStaufferDC)

EVENT DETAILS
Date: Friday, September 13, 2019
Time: 8:45 AM to 12:30 PM EST
Location: 901 E St. NW, Washington, DC
Small town
Small town
Fact Sheet

How the Federal Government and States Coordinate in Times of Recession

Quick View
Fact Sheet

As the U.S. economy continues the longest period of expansion in its history, economists are weighing the likelihood of a downturn. The past two recessions, in 2001 and 2007, significantly affected state revenue, prompting the federal government to help states balance their budgets by providing stimulus funding.

Issue Brief

‘Lost Decade’ Casts a Post-Recession Shadow on State Finances

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Issue Brief

Nearly 10 years after the end of the Great Recession, state governments have put the worst behind them. But the deepest downturn since World War II also has lived up to early predictions that states would face a “Lost Decade” because of missed economic and revenue growth.