Public Services, Budgets, and Economic Development

Too often, states and cities pursue economic development strategies that amount to little more than tax giveaways to big corporations. Pushing back on this flawed approach, EARN groups design and promote smart economic development policies that invest in infrastructure, in people, and in the communities where opportunity is lacking.

Smart economic development means strong workforce development programs, such as apprenticeships and sector strategies; infrastructure investments in transportation, schools, broadband, and healthcare; and community development projects that deliver good, high-paying jobs to local residents, especially in communities of color, and other underserved communities.

Federal funds for state and local governments

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Public Services and Employment

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Education

High-quality and equitable education opportunities, ranging across early childhood, K-12, technical education, higher education and apprenticeships, are pivotal for the economic prospects of working people and their children. Read More.

Healthcare

Across the country, 29.8 million people would lose their health insurance if the Affordable Care Act were repealed—more than doubling the number of people without health insurance. And 1.2 million jobs would be lost—not just in health care but across the board. Read More.

Infrastructure

State and local governments account for the bulk of public spending on infrastructure. Infrastructure investments can ensure that we do not leave future generations a deficit of underinvestment and deferred maintenance of public assets. Read more.

Budgets and Taxes

Closing budget deficits is not always the optimal fiscal policy in the short term  or the medium term. Instead, budgets should simply be seen as a tool with which to boost living standards. Read More.

Publications

Kansas Public Education: The Foundation for Economic Growth

  • April 1, 2016
  • Staff Report

Kansans have long recognized that education is key to economic growth. In 1874, the Territorial Legislature took the first steps to increase school attendance by passing a compulsory school attendance law. The rationale: “education was key to the state’s growth and development, since a literate and skilled citizenry could help build business and industry.” Over 150 years later, as state lawmakers seek to “make the Sunflower State the best place in America to raise a family and grow a business,”2 the link between education, workforce, and economic growth endures. Then as now, investment in public education directly correlates to Kansas’ stake in the national and global economy.

Unfortunately, Kansas struggles to keep pace with the investments necessary to ensure K-12 education remains relevant and responsive to workforce demands. Following a recent series of tax policy changes, the state continues to lose ground as job growth lags and revenue continues to trend downward.

Kansas faces big challenges. We are dealing with recurring budget crises. We are not making strategic and long-term decisions. We are not talking about the investments necessary to fund K-12 education. We are not talking about the opportunity cost of not investing in education. We are not generating enough private sector jobs.

For Kansas to remain competitive, policymakers and the governor must recommit to supporting K-12 public education, a critical part of the workforce development pipeline, with the resources necessary to create the next big economic surge.

Increasing Rhode Island’s Minimum Wage & EITC

The Governor’s FY17 Budget Article 13 increases the minimum wage to $10.10 next year and expands the state earned income tax credit from 12.5 percent to 15 percent of the federal credit (the Governor indicated an interest in further expanding the EITC pending available resources following the mid-year revenue forecast). Senator Goldin and Representative Slater have each introduced bills (S 2156 and H 7347) to further increase the EITC to 20 percent of the federal credit. Lawmakers have made real progress in these two areas over the past several years and future process to raise the labor and living standards of our workers going forward is well warranted.

No Substitute: Assemblyman Kolb’s Proposed EITC Expansion Is No Substitute for Governor Cuomo’s Proposed $15 Minimum Wage

As an alternative to the Governor’s proposed phased increase in the state’s minimum wage to $15 by 2019 in New York City and by mid-2021 outside of New York City, Assemblyman Brian Kolb recently proposed to increase the state’s Earned Income Tax Credit (EITC) from 30% to 45% of the Federal EITC. The bill memorandum in support of his proposed legislation states: “Expanding the EITC is a much better alternative because it would put more money in the
taxpayers’ pockets, boost the economy and create employment opportunities for the unemployed.”

While the state’s EITC is a beneficial program for working people receiving low- and moderate wages and should be enhanced, for several reasons, it is not a substitute for increasing the state’s minimum wage. In fact, it does not even come close.