Fiscal Federalism

Fiscal Federalism

Research

Jason Sorens | Feb 09, 2016
When local governments in the United States and other developed nations become more dependent on the central government’s grants, they tend to become less efficient, spending more and taxing more for the same level of services. Voters can also find it difficult to understand which level of government is responsible for which policy.
Stephen Miller, Zachary Gochenour | Jan 19, 2016
A new study written for the Mercatus Center at George Mason University analyzes North Carolina’s performance on key issues, the way in which the state government manages itself, and opportunities for improvement. North Carolina has recently implemented proactive reforms to its tax system, indicating that state lawmakers are capable of executing the other positive policy changes outlined in this study.
Eileen Norcross | Jul 07, 2015
In new research for the Mercatus Center at George Mason University, Senior Research Fellow Eileen Norcross ranks each US state’s financial health based on short- and long-term debt and other key fiscal obligations, including unfunded pensions and health care benefits. The study, which builds on previous Mercatus research about state fiscal conditions, provides information from the states’ audited financial reports in an easily accessible format, presenting an accurate snapshot of each state’s fiscal health.
Matthew Mitchell, Pavel A. Yakovlev | May 13, 2015
A new study for the Mercatus Center at George Mason University shows that differences in these rules can have significant effects on policy. The study finds that states with separate taxing and spending committees spend less per capita than other states. Voters concerned about the growth of government may want to take a closer look at this phenomenon.
Randall G. Holcombe | Feb 26, 2015
In a comprehensive assessment of Florida’s fiscal policy, Dr. Randall Holcombe of Florida State University examines the state’s education and health care spending, pension system, taxes and budget, land use regulation, homeowners insurance, and many other key policies. To read the entire paper, please download the PDF. To view individual sections by issue, see below.
David T. Mitchell , Dean Stansel | Jan 20, 2015
In a new empirical study of state-level fiscal data for the Mercatus Center at George Mason University, economists David T. Mitchell and Dean Stansel examine these competing hypotheses and conclude that fiscal stress at the state level is positively correlated with spending growth and negatively correlated with the size of the state’s rainy day fund.

Testimony & Comments

Expert Commentary

May 24, 2016

To better understand what it takes to pass comprehensive tax reform at the state level, new research published by the Mercatus Center at George Mason University examines five recent cases: Utah, Rhode Island, Michigan, Kansas and North Carolina.
Feb 25, 2016

Evidence suggests that intergovernmental transfers can adversely affect the total level of government spending, government debt, the tax burden, government efficiency, public knowledge about government, and economic growth.
Jan 04, 2016

Most Ohioans would probably agree that their state’s finances are managed relatively well. According to Mercatus Center at George Mason University research, which ranks states’ fiscal health, they’re right. Ohio ranks seventh nationwide, and several of the states placed higher have the advantage of massive oil and gas revenue.
Sep 01, 2015

How serious was the default by Puerto Rico on its bond obligation? As a member of parliament and associate minister of finance during the recovery in New Zealand during the mid-1980s when the commonwealth almost went bankrupt, I have firsthand knowledge of how difficult recovery is — but I also know that it is possible.
Aug 30, 2015

In a new study based on states' audited financial reports, I rank New Jersey 49th out of 50 states for its fiscal health. Recently, I testified before the state Senate in Harrisburg on Pennsylvania's ranking, which is on a similar path at 41st. Fortunately, it may have time to change course by executing some of the same reforms that would help pull New Jersey out of its tailspin.
Jul 23, 2015

Michigan has struggled to emerge from the Great Recession, just like so much of the rest of the nation — and it still has a great deal of work to do. The latest evidence is a new report published by the Mercatus Center at George Mason University, which shows the state’s “fiscal health” ranking is slipping.

Charts

This week’s charts use data from a National Public Radio compilation of public Department of Defense records of grants issued to state and local law enforcement bodies through its Excess Property Program, also known as DoD 1033. The charts display the total value of all known grants to municipalities in real 2013 dollars along with the total value and number of mine-resistant and combat vehicles distributed from 2006 to April 2014.

Experts

Podcasts

| July 23, 2015
Michigan’s fiscal solvency lags behind numerous other states. Ted Bolema analyzes the situation for the Frank Beckman Show on WJR in Michigan.

Recent Events

Media Clippings

Sarah Arnett | Jan 17, 2014
The Mercatus Center cited at Philly.com.
Sarah Arnett | Jan 16, 2014
The Mercatus Center cited at Investor's Business Daily.
| Jan 16, 2014
Mercatus cited at Union Leader.
Eileen Norcross | Aug 30, 2012
Eileen Norcross cited discussing high risk financing.
Charles Blahous | Jun 14, 2012
Charles Blahous comments on President Obama's recent statement that state and local governments are the prime source of weakness in the economy.
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