Federal-State Coordination Was Vital During the Last Recession; We Need a Playbook for the Next One.

Federal-State Coordination Was Vital During the Last Recession

Recessions happen.

They’re hard to predict, and their causes are complex. Even now, as the economy continues the longest expansion in its history, economists are divided about the imminence of the next downturn.

But if the when and why of recessions are unclear, the consequences are all too familiar. Consumption will decline. Employment will fall. And state governments—which rely on sales and income taxes—will face decreasing revenues, paired with a surging demand for programs such as unemployment insurance and Medicaid.

 

This piece was originally published in The Hill. Read the full article here.

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.