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Across the country, 29.8 million people would lose their health insurance if the Affordable Care Act were repealed—more than doubling the number of people without health insurance.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

Hawai‘i Budget Primer: An Overview of How Hawai‘i Invests in Our Future and Our People

Hawai‘i has a new resource to help make better budget and tax policy decisions, coming online at a critical time in light of recent and upcoming events in Washington.

The Hawai‘i Budget Primer serves as a starting point for a new effort to pull together data and information relating to the budget so policy makers, community leaders, and interested citizens can make better informed budget and policy decisions.

Takeaways from the Budget Primer include the following:

  • Hawai‘i is last in the nation in terms of percentage of our state budget that comes from federal sources, suggesting that Hawai‘i may have an opportunity to attract more federal dollars to support state programs.
  • State government spending accounts for 20 percent of the gross state product (GSP). In combination with county budgets, 26 percent of the GSP comes from Hawai‘i-based government.
  • Hawai‘i residents with the lowest incomes pay almost twice as much of their earnings to state taxes than people with the highest incomes.
  • The state’s biggest source of tax revenue is the general excise tax. The GET appears to be deceptively modest (4 to 4.5 percent) if seen as a sales tax but, because it’s an excise tax applied to virtually every transaction, the multiplied effect would equal a sales tax of 10 to 11 percent.
  • Hawai‘i’s property taxes, which are collected at the county level only, are at the lowest rates in the country.

Benchmarking 2018: Utah vs Idaho

The goal of the Working Families Benchmarking Project is to identify economic and related issues affecting Utah families and examine them through a comparative lens, evaluating Utah using a peer state as a benchmark. Many existing economic comparison studies and rankings look at the economy as a whole or at its impact on specific sectors or on employers. This project seeks to augment those very useful comparisons by focusing on how the economy is experienced by moderate- and lower-income families. It is these families whose children are most at risk of not achieving their potential in school and later in the workplace. Thus, how they experience the economy is of particular interest to Voices for Utah Children.

Publication

Overhaul: A plan to rebalance Ohio’s income tax

Policy Matters Ohio outlines here a set of changes to the state income tax—the only major tax based on the ability to pay—that will bolster our ability to make key investments in education, human services and local governments. It will begin to reverse the slant of our tax system against low- and middle-income Ohioans—yet because state and the recent federal tax cuts have been so enormous, few of even the richest residents will be paying more overall when our proposed increases are added to recent cuts.

Publication

At the Wage Floor: Covering Homecare and Early Care and Education Workers in the New Generation of Minimum Wage Laws

In November 2012, fast-food workers in New York went on strike and the Fight for $15 was born.
Over the last five years, the movement has lifted wages for more than 17 million workers across the
nation by fighting for and winning numerous minimum wage policies (National Employment Law
Project 2016). Substantial minimum wage increases are underway in California, New York, Oregon,
and more than 30 cities and counties around the country. In states and cities covered by them, these
new minimum wages will increase earnings for 25 to 40 percent of workers (Reich, Allegretto, and
Montialoux 2017; Reich et al. 2016). After four decades of wage stagnation and rising inequality, the
movement has delivered real, much needed, and meaningful progress in a remarkably short period of
time.