Special Briefing on States Cutting Taxes: Relief Now, Shortfalls Later?

In a Special Briefing hosted by the Volcker Alliance and Penn IUR an expert panel discusses actions states and municipalities are taking related to tax relief, if they will provide inflation relief or spur economic growth—or whether they will lead to shortfalls if rising interest rates end in recession, just as much of the pandemic aid is set to expire. This Special Briefing features a panel of experts, including Alex Adams, budget director, Idaho; Beverly S. Bunch, professor, School of Public Management and Policy, University of Illinois Springfield; Howard Cure, partner and director of municipal bond research, Evercore Wealth Management and Shelby Kerns, executive director, National Association of State Budget Officers. 

Notable Quotes:

 “Lifted by federal support and unexpectedly strong revenue growth after the pandemic hit, rainy day funds hit a record of 13.5 percent of shared general fund expenditures in fiscal 2021.” - Shelby Kerns

 “If you’re say cutting a gas tax within a state and that state uses the gas tax or leverages the gas tax to issue debt for basic transportation infrastructure needs, what happens when you suspend it?” - Howard Cure

 “It’s not what you do in bad times, it’s what you do in good times that will set you up for success or failure in the future.” - Director Alex Adams 

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 Special Briefing is published by the Volcker Alliance, as part of its Public Finance initiatives, and Penn IUR. The views expressed on this podcast are those of the panelists and do not necessarily reflect the position of the Volcker Alliance or Penn IUR.