Should the federal government bail out the states? Lessons from past recessions
Richard H. Mattoon;
Subject: Federal government ; State finance
Like the economy in general, individual state economies are struggling in this recession. State governments face significant constraints in raising additional revenues. Most states are required to balance their budgets regardless of the economic environment. This articl... View more
9 The American Recovery and Reinvestment Act of 2009 was enacted by Congress and signed into law by President Obama on February 17, 2009.
10U.S. General Accounting Office, 1977, “Antirecession assistance: An evaluation,” report, No. PAD-78-20, Washington, DC, November 29, pp. 6-7, available at www.gao.gov/products/PAD-78-20.
11U.S. General Accounting Office (2004), p. 2.
14Congressional Budget Office (1978), p. 25.
15Max B. Sawicky, 2003, “Altered states: How the federal government can ease the states' fiscal crisis,” EPI Issue Brief, No. 187, February 26, available at www.epi.org/ publications/entry/issuebriefs_ib187/.