State Budgeting Issues

1484 WordsJul 9, 20186 Pages
To say it’s been a rough span of years for the state and local governments would be an understatement during this recession. From 2008 to present day all states have struggled to balance their budget and not run a deficit. Throughout American history, this is said to be the worst recession since 1947 after World War II. Revenues fell substantially and unemployment went into the double digits. Throughout this struggle we’ve seen cuts in education, public services, increases in taxes and spending cuts. This recession has affected businesses and residence raging from young to elderly. The federal government has stepped in to help by providing the American Recover and Reinvestment Act (ARRA) but this eventually will spiral down to its finish…show more content…
They had the top housing market and were building new schools monthly to keep up with their population growth. When the recession hit they took a huge loss in the amount of revenue that was collected every year from their tourist attractions. In addition, the housing market to fell and educational cuts happened throughout the region. Teachers were being let go and public services were also being effected by this. In Nevada’s circumstance, and much like every other state, they rely mostly on their sale revenue and income taxes. When a recession hit revenue decrease and the people’s income taxes were affected making it difficult for spending. “Nevada has cumulatively lost $25.4 billion in income since 2008, translating into a staggering $9,800 per resident”(Abramsk 2). This affected health care, education and public safety and consumer demand. State governments are restricted in ways that ultimately put them at a stand still when responding to the recession. The states have slim choices to react to quick economic shocks like this one. The states have to also keep in mind they cannot compromise public services, medical help and unemployment insurance benefits. Although the ARRA would help with solving some of these problems like said before, the money will eventually halt. If the state goes spending crazy trying to totally avoid cutting taxes this could also cause a problem. There needs to be a balance of spending the federal
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