The Mercatus Center at George Mason University recently released the study, “Institutions Matter: Can New Jersey Reverse Course?” by Eileen Norcross and Frederic Sautet. They examine the current dire strait of the Garden State’s public finances and discuss how the state created its fiscal crisis.
New Jersey’s public sector defined benefit pension systems are underfunded by more than $170 billion according to a new study, “The Crisis in Public Sector Pension Plans: A Blueprint for Reform in New Jersey” by Eileen Norcross of the Mercatus Center at George Mason University and Andrew Biggs of the American Enterprise Institute.
States are facing tough decisions. Spending cuts, restructuring programs, and re-thinking the role of state government is being taken up across the country by “streamlining commissions” where a blend of private and public sector representatives offer recommendations how making state governments more effective and efficient.
Massachusetts like most states grappled with a significant decline in revenue (2.5 billion in MA) in 2009. Despite efforts by way of spending cuts and tax increases to create a sustainable 2010 budget in Massachusetts, there is still a 600 billion gap.
Sub-local forms of governments (private community associations, business improvement districts, etc) have been on the rise throughout America the past thirty years. Sub-local governments can specialize and otherwise more effectively address urban problems that have defied the efforts of conventional city governments.
Over the last 10 years spending has gone up dramatically at both the federal and state level. The progression of spending as a percentage of GDP over the last decade has risen from 18% to over 26%. This trend is not only true for the federal government, but also in many states.
As states face budget crises and deficits, many state policy makers are looking at what reforms can be put into place to boost a stagnant economy. In this episode we discuss the process and steps New Zealand and other governments took to boost their economy, create effective reforms in balancing the budget and general best practices for good governance.