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Across the country, 29.8 million people would lose their health insurance if the Affordable Care Act were repealed—more than doubling the number of people without health insurance.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

PublicationResources

Using Local and Economically-Targeted Hire to Promote Good Jobs through the Infrastructure Investment and Jobs Act

  • October 7, 2022
  • Michael Lawliss, Lew Finfer, and Jennifer Sherer

The Bipartisan Infrastructure Law (BIL), also known as the Infrastructure Investment and Jobs Act (IIJA), was signed into law on November 15, 2021. This federal legislation will bring $1.2 trillion to states and cities over the next 5 years to repair and build roads and bridges, public transportation, the broadband network, and water infrastructure, among many other critical infrastructure projects. Each state will receive billions of dollars in funding over the next 5 years through mandatory and competitive grants, loans, and bonds.

Local and targeted hiring refers to policies attached to major economic development and construction projects that seek to ensure that a certain percentage of the jobs on the contract be set aside for local residents or for job seekers that share a particular set of demographic characteristics, such as being from communities historically underrepresented in an industry or experiencing barriers to employment. A range of community and labor advocates worked together with federal policymakers to include a provision in the BIL that allows policymakers to enact preferences for local and economically-targeted hiring on highway and transit construction projects receiving financial support from the US Department of Transportation (USDOT). This is the first time local and economically-targeted hire on federally-funded projects is allowed after years of community advocacy.

This guide provides an overview of local and targeted hiring policies, answers key questions for states and cities looking to implement these policies, and offers success stories from around the country. The BIL represents an important organizing opportunity for community groups and unions to meet with state officials on incorporating local and economically-targeted hiring provisions in the highway and transit construction contracts that local agencies will be issuing over each of the next 5 years. Our hope is that this guide will be helpful not just for BIL implementation, but for other local initiatives and future legislation as well.

Publication

Equitable tax policy in the South

The American South is one of the most racially diverse regions of the country and is famous for its food, hospitality and music. But Southern states also fare worse on most measures of well-being, such as poverty, health and education, partly because they raise less revenue per capita than other states. Inadequate revenue means less financial support for vital public services such as education and health care. A new report from the Institute on Taxation and Economic Policy examines the racist policies that led to the South’s regressive tax laws.

Publication

The Lost Decade

Texas AFT and Every Texan released a report highlighting “The Lost Decade” in Texas, a period in which underfunding schools has led to educators making less money than ever, with students facing the consequences of a crisis in keeping our teachers in the classroom.

As Texas AFT reported in February, a survey of its members showed that 66% had considered leaving their profession in the past year, and they said the primary motivator for keeping them in public education was increasing their salaries. “The Lost Decade” report, unfortunately, backs up their contention of low pay because it shows, on average, teachers are making 4% less than they were in 2010 (after adjusting for inflation). While 4% is the average, statistics show many educators making upwards of 12% less. Meanwhile, many support staff employees are still teetering at the federal poverty level with embarrassingly low wages.

The report explores how the latest school finance law, while initially plugging more money into public education, is mainly being used to reduce property tax rates and is not giving public education funding the ongoing boosts it needs to combat declining school employee wages. The report also looks at other issues driving teacher turnover and proposes solutions to address the challenges.