State Leaders Weigh Allocation of American Rescue Plan Act Funds

Pew offers guidance to Colorado lawmakers

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Projects: State Fiscal Health
State Leaders Weigh Allocation of American Rescue Plan Act Funds

In a memo to Colorado’s Office of State Planning and Budgeting, experts from The Pew Charitable Trusts outline three questions that states should consider when deciding how to allocate federal funding from the American Rescue Plan Act:

  • How should they balance one-time and ongoing spending?
  • Are there opportunities for states to improve their long-term fiscal positions?
  • What strategies will ensure that initiatives to revitalize the economy are effective and accountable?

This memo sent April 29, 2021, summarizes Pew research on key fiscal and economic policy issues, including long-term budget forecasting, rainy day fund policy, and economic development programs.

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Many states ended 2017 flush with unexpected cash. Federal legislation that caps some tax deductions beginning in 2018 prompted many Americans to prepay their state and local taxes. While this surprise revenue was positive news for state budgets, several policymakers struck a cautious tone.

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Data from an array of sources has shown that Americans who grow up in economically distressed areas experience lower-performing schools, higher crime rates, a variety of health and environmental hazards, and less upward mobility.

Downloads State Leaders Weigh Allocation of American Rescue Plan Act Funds (PDF)
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