Government Finance: Limits• Legal limitation strategies

– Property tax reforms– Revenue limitations– Expenditure limitations

• Income tax– Ties to federal policies?– “Circuit breakers”– Targeted tax credits?

Government Revenues: Future?

• New sources: Fees? Lottery? Taxing services? Taxing intangibles?

• Electronic commerce: Who gets revenue stream?

• Distribution of revenue among levels of government?

• Differing strategies for differing services?

Major Issues Facing States (Policy)• Finance & Revenue Questions• Economy

– Dislocation & joblessness: plant closings, off-shoring, structural changes in economy

– Economic development in response: Strategies Competition

• Population & demographic changes:– Immigration/out-migration, – Rural/urban– Aging – Wealth/poverty

• Families/social services/welfare (and reform)

Issues Facing States (Policy)

• National Security: preparation, costs• Health

– Medicaid – Uninsured– Costs of state employee coverage– Delivery systems: availability & quality– Medical malpractice costs– Chronic illness and related

• Education– Pre-school, elementary/secondary (& “No Child Left Behind”)– Higher education– Retraining for changing economy

Issues Facing States (Policy)• Environment

– “Smart growth” and land use– Air & water quality, cleanup, transportation

• Justice system: Prisons, Death penalty, costs• Government service delivery:

– design, privatization, scope, finances– Infrastructure problems

• Federal/state/local balance & federalism– Unfunded mandates– Preemption (in many areas)– Devolution– Role of non-profits re social welfare

State Government: Legal Issues• Separation of powers (legislature, executive,

courts)• Legislatures: term limits, campaign financing,

political polarization• Government agencies: Governor’s role;

delegation to agencies, structural reorganization, relationship with feds/localities, leadership

• Judiciary: selection and “dispute resolution”• Accountability to citizens

– Initiative & referendum (direct democracy)– “Open government” in electronic age