Journal Article

The fiscal position of the state and local government sector: developments in the 1990s

Abstract: After a difficult period during the early 1990s, the fiscal position of state and local governments has improved considerably in the past three years. States, as a group, have fared relatively well, although some local governments are still struggling with fiscal difficulties. In addition, the sector as a whole continues to face persistent underlying structural problems. This article first examines the primary budget concepts that are generally used to evaluate the fiscal condition of state and local governments. Then it surveys the status of the various levels of government, and finally, it discusses some of the underlying problems in state and local budgeting, particularly in the areas of health care, education, corrections, and pensions.

Keywords: Local finance; state finances;

JEL Classification: E62; H71; H72;

https://doi.org/10.17016/bulletin.1996.82-4

Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: Federal Reserve Bulletin

Publication Date: 1996-04

Volume: 82

Issue: Apr