Federal Issues

 

Information on federal legislation, mandates, programs, executive orders, and other actions that impact state finance. In fiscal year 2011, federal funds represented 34 percent of total state expenditures, although this percentage is likely to decline following the wind down of the funding provided through the Recovery Act. The possibility of future federal budget cuts combined with likely congressional changes to healthcare, K-12 education, tax policy, and other areas, has led to a significant level of uncertainty among state decision-makers.

Staff Contact: Kathryn Vesey White

NASBO Publications

  • State fiscal conditions are continuing to improve into fiscal 2013, although many state budgets are not fully back to prerecession levels. This report finds that governors’ recommended budgets show an overall increase in both general fund expenditures and revenues in fiscal 2013. Fiscal trends indicate that while
  • Over the past year, Congress and the administration have taken up the issue, on numerous occasions, of federal budget deficit reduction. Many state and local officials understand the need for, and are supportive of, efforts to reduce the long term federal deficit. However, many state and local officials also have concerns about the way in which such actions will be implemented and believe it is important to understand the consequences of certain decisions.
  • The rise of internet sales and electronic commerce over the past fifteen years has prompted states and Congress to reconsider the issue of remote sales tax collection. After years of inaction on the issue, Congress now has three similar, though importantly distinct legislative proposals under consideration in both the House and Senate that would require out-of-state retailers to collect and remit sales taxes.