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Across the country, 29.8 million people would lose their health insurance if the Affordable Care Act were repealed—more than doubling the number of people without health insurance.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

Publication

Effects of Federal Tax Cuts in Hawai‘i: Correcting the Record

Hawai‘i’s Department of Business, Economic Development and Tourism (DBEDT) recently released a report, “The Impact of the Federal Tax Cut and Jobs Act (TCJA) on Hawai‘i Households,” which analyzed the effects of the new federal tax law on Hawai‘i households in 2018.  This report, which was featured in an article in the Honolulu Star-Advertiser, concluded that the lowest-income taxpayers in Hawai‘i would see large savings from the TCJA, while those at the top would pay more.

We disagree.  At both the low and high ends of DBEDT’s analysis, crucial details of federal tax law appear to have been left out of their calculations. As a result, the report’s conclusions mask the actual impact of the new federal tax law on Hawai‘i taxpayers at different income levels.

 The TCJA is complicated and all of its provisions need to be considered in reporting the effects on households in Hawai‘i.  It is pretty clear that, when all the factors are included in the analysis, the TCJA significantly benefits the most affluent among us while doing almost nothing to help the people who need relief the most.

Publication

Hawaiʻi Vacation Rentals: Impact on Housing & Hawaiʻi’s Economy

Finding affordable housing has long been a significant challenge for Hawaiʻi’s residents. Over the past decade, it has risen to crisis proportions. The growth of the vacation rental industry in recent years is exacerbating these problems.

Over just the last two years, the number of VRUs has increased by 35 percent. One out of every 24 housing units in the state is a VRU, with some communities being completely overwhelmed by the industry’s growth. On Kauai one in eight homes is used as a VRU. In Lahaina, the ratio drops to one in three.

The reason why investors are choosing VRUs over long-term rentals is obvious: the average VRU brings in about 3.5 times more revenue than a long-term rental unit. However, the loss of long-term rentals to VRUs means higher housing costs for Hawai‘i residents.

One in three Oregon families struggle to afford housing

Many Oregonians are struggling to afford safe and stable housing. Renters — who are disproportionately Oregonians of color — are the most likely to suffer from high housing costs. Many homeowners also struggle to keep a roof over their heads. Not surprisingly, housing costs weigh more heavily on low- and moderate-income households.

For Oregonians struggling to pay for their rent or mortgage, the cost of housing can make it hard to afford other basics such as healthy food and child care. In the worst cases, unaffordable housing costs increase rates of homelessness in Oregon.

Housing instability, in turn, undermines the physical and mental health of families, as well as the ability of children to succeed in school.