In an era of heightened economic uncertainty, state governments are facing unpredictable revenue as well as rising health care, education, and infrastructure costs. How policymakers choose to confront these challenges will affect states and the nation for years to come. Through both research and advocacy, Pew provides data, analysis, and guidance to help states navigate these fiscal challenges and identify potential policy approaches.
Our research—including 50-state assessments—examines key trends in state finances and evaluates states on their performance, underscoring effective approaches and creating an environment for potential reform.
We collaborate with policy leaders in states in a variety of ways:
Research: We conduct comprehensive and policy-relevant research. Our findings give states evidence-based options to address their unique fiscal challenges.
Information sharing: We serve as a resource to policymakers making research-driven decisions to improve fiscal outcomes in their states. We lead webinars, events, and meetings and provide communications assistance to encourage state, regional, and national conversations on budget policies and practices.
Technical assistance and policy advocacy: We provide strategic technical assistance to states seeking to improve their budget practices. Our capabilities encompass policy design, including state comparative analysis; drafting or advising on legislation; offering testimony; and supplying other assistance, as requested.
Through these strategies, our goal is to help policymakers manage economic and revenue volatility, enhance transparency, and improve their states’ fiscal health over the long term.
The recent economic turmoil resulting from COVID-19 has given increased attention to what national and state data are telling us about the pandemic’s impact on workers, businesses, and government budgets. Michael Horrigan, president of the W.E. Upjohn Institute for Employment Research, recently answered questions about how to understand the data in these turbulent times.
Why Business Incentives May Not Speed State Economic Recoveries
During economic downturns, state policymakers face pressure to strengthen their economies and create jobs. In an effort to spur an economic recovery during and after the Great Recession, some states created business tax incentives designed to influence companies’ location and expansion decisions.
In response to the unprecedented shutdown of the nation’s economy caused by the COVID-19 pandemic, top state economic development officials have pivoted from competing with one another for businesses to a more collaborative approach.
The worst impact of the coronavirus as of early April has been in urban areas, but the problem is quickly spreading to less dense regions. Hospitals and public health agencies in the nation’s rural counties, many of which were already struggling before the pandemic took hold, may lack the resources to respond, in part because of shrinking populations.
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.
Taxes and federal funds together account for 80.3 percent of revenue for the 50 states. Taxes are the largest revenue source in 43 states, while federal funds are greatest in seven: Alaska, Arizona, Louisiana, Mississippi, Montana, New Mexico, and Wyoming.
