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Across the country, 29.8 million people would lose their health insurance if the Affordable Care Act were repealed—more than doubling the number of people without health insurance.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

Best Practices for Local and State Prioritization of American Rescue Plan Act Funds

Under the American Rescue Plan Act (ARPA), states, cities, counties, U.S. territories, and tribal nations will receive a total of $350 billion in Fiscal Recovery Funds to respond to the COVID-19 emergency and help bring back jobs. In West Virginia, the state government will receive $1.355 billion and cities, municipalities, and counties will receive a total of $676.6 million. ARPA funds are already flowing into communities and our state and can be used on eligible costs incurred through December 31, 2024.

On May 10, 2021, the U.S. Department of the Treasury issued3 an Interim Final Rule providing guidance to recipient governments that explains how the Treasury will interpret the ARPA legislation’s language and administer the Fiscal Recovery Funds.

This document will focus on the allocations to cities, municipalities, counties, and the state of West Virginia, and will highlight both best practices and Treasury guidance to inform government officials and residents about the parameters for spending and the best ways to utilize these funds to make long-term improvements in our communities.

When determining whether or not a proposal should utilize ARPA Fiscal Recovery Funds, local and state elected officials and decision-making bodies should assess whether the proposed expenditure has broad public benefits in addition to ensuring that it falls under an approved category. A public benefit test will help to maximize the impact of these funds to address longstanding community needs.

Publication

Care for Our Commonwealth: The Cost of Universal, Affordable, High-Quality Early Care & Education Across Massachusetts

Key Takeaways

  • Massachusetts families depend on early care & education (ECE) to promote healthy child development and so parents can go to work knowing their children are safe. However, our ECE sector faces many systemic challenges. Care is often unaffordable and teachers are chronically underpaid. These concerns have been exacerbated by the COVID-19 pandemic.
  • High-quality ECE—including strong curriculum and supportive teaching in classrooms, professional development, small class sizes, well-compensated teachers, and full-time schedules—has been widely linked to positive benefits for kids that can carry forward into elementary school and beyond. This includes exemplary programs in Massachusetts.
  • Existing public programs, such as Head Start, state ECE subsidies, and the preschool programs offered by school districts meet some of the need, currently enrolling 91,000 children and spending $1.27 billion in public funding annually.
  • The full cost of high-quality ECE would be just over $28,000 per child each year for ages 0-4 (infants, toddlers, and preschool children), nearly double the funding of existing programs.
  • Universal high-quality ECE in Massachusetts, with affordable capped fees of no more than 7% of income and free for low-income families, would cover a total of 288,000 kids with net new costs of $5.03 billion.
  • Affordable high-quality ECE would particularly benefit families of color and low-income families who may be struggling with the high cost of care. Increases in teacher pay, benefits, and working conditions, necessary for high-quality ECE would also benefit teachers in the ECE field.
  • Like the reform of K-12 school funding in Massachusetts, funding universal ECE could be phased in over several years, with initial priority for the most under-served communities.
Publication

Introducing the State of Opportunity Index

  • April 20, 2021
  • Nicole Rodriguez

New Jersey does best when all residents can reach their full potential, regardless of their race, ethnicity, or neighborhood. This requires quality public education, safe and affordable housing, jobs that pay well, healthy places to live, reliable transportation, and assurance of just law enforcement practices, among other essentials. Yet many residents across the state still face persistent barriers, despite decades of progress. These disparities are particularly acute for people of color and women who face the compounding effects of racism and sexism. But by having a clearer idea of the challenges we face and where they manifest, we can better plan our efforts for policy advocacy.

Publication

The State of Working Alabama 2021

When the COVID-19 pandemic hit Alabama in March 2020, it didn’t just cause massive human suffering and economic disruption. It also revealed suffering and disruption that have long existed and that policymakers have long neglected – or even perpetuated.

COVID-19 has laid bare deep racial inequities in Alabama’s economy and social system that have left our state unprepared to meet the needs of its people in this disaster. As the workers predominantly on the front lines, women and people of color bore the brunt of the economic meltdown. They also simultaneously have suffered greater exposure to the virus that caused it.

Alabama has a weak safety net for struggling families and an approach to economic growth that all too often leaves workers underprotected and underpaid. This ongoing policy legacy has exacerbated the damage that the virus has wreaked on the state’s working people.

In The State of Working Alabama 2021, Alabama Arise explores COVID-19’s significant and negative impacts on the state’s workforce. We also look ahead to outline a state and federal policy agenda for repairing the damage – not by repeating the policy mistakes of the past, but by charting a new path toward a more equitable economy marked by broadly shared prosperity.