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Across the country, 29.8 million people would lose their health insurance if the Affordable Care Act were repealed—more than doubling the number of people without health insurance.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

Expanding Home Care Options in Maryland

Home care aides provide vital care to thousands of Marylanders who have difficulty with daily tasks because of their age, a disability, or a health condition. These workers help their clients with a wide variety of critical daily tasks, such as bathing, dressing, and eating. This care enables many to remain in their homes rather than moving to a nursing home or other institution.

As Maryland’s population ages, home care is likely to become increasingly important for the health of older Marylanders and people with disabilities, as well as for our state economy. Because Medicaid pays for more than half of all home care services delivered nationwide, state policies have an important role in determining the kind and quality of home care services available.

Unfortunately, Maryland recently limited the ways aging adults and Marylanders with disabilities can obtain Medicaid-funded home care services by canceling its independent provider program. This program allowed people who receive home care services to exercise a significant degree of control over their own care, and canceling it is likely to harm both Medicaid participants and home care aides. Although the state initially projected that this program would become dramatically more costly as a result of changes in federal labor regulations, an analysis by the Maryland Center on Economic Policy shows that these costs would be relatively small. To ensure quality care for older Marylanders and Marylanders with disabilities, the state should reinstate the independent provider program.As Maryland’s population ages, home care is likely to become increasingly important for the health of older Marylanders and people with disabilities, as well as for our state economy. Because Medicaid pays for more than half of all home care services delivered nationwide, state policies have an important role in determining the kind and quality of home care services available.

The Evidence on Millionaire Migration and Taxes

Economists consistently find that a well-educated workforce and a high-quality transportation system are among the bedrock elements upon which a prosperous state economy is built. Providing everyone with access to the education and training they need to reach their full potential boosts the productivity of individual workers and strengthens the overall economy. A well-functioning transportation system likewise strengthens the economy, allowing goods and people to move quickly and reliably to the places they need to be. (For a more detailed discussion of the impacts of state investments in education and transportation, see MassBudget’s report on these issues.)

While the economic importance of high-quality transportation infrastructure and public education are widely recognized, some fear that raising taxes to fund such investments could lead to high-income taxpayers leaving the state—particularly if tax increases are focused heavily on these high-income households. Fortunately, because there is wide variation in tax rates among the 50 states, economists have ample data with which to study this question. The most thorough studies have found consistently that tax rates influence the residence decisions of only a very small share of such households. Instead, high-income people—like other people—overwhelmingly choose where to live based on work and business opportunities, family and social connections, and the draw of an agreeable climate. The vast majority do not make their residence decision based on state tax rates. In this policy brief we examine the evidence on the likely migration effects of raising income taxes on high-income households—those with taxable annual income above $1 million—and the impacts on net state revenue.

How Vulnerable is Massachusetts Transportation to Federal Spending Cuts?

A high-quality transportation system is important for our quality of life and the strength of our economy.1 Our state and federal governments work together to fund the construction and maintenance of our roads, bridges, rails, and public transit systems. In the coming months Congress is expected to debate proposals that could destabilize this partnership. This fact sheet examines the extent to which the Massachusetts Department of Transportation (MassDOT) and transit agencies across the state rely on federal sources of revenue for their operations and capital investment. It describes the federal grants that are most vulnerable to near-term budget cuts and how larger sums of federal transportation funding could face cuts after 2020.

In general, most federal transportation funding to Massachusetts is more vulnerable to budget cuts in the longer term than the short term. Most immediately, federal cuts could eliminate or curtail some programs that have awarded grants to Massachusetts in the past for transportation improvements and expansions, especially for public transit and rail. Over the longer term, a lack of sustainable revenue for the federal transportation trust fund imperils the larger federal support provided for Massachusetts investment in highways, transit and other construction and repair projects.

Struggling to Make Ends Meet: The Need for a Working Family Credit

This report summarizes findings from the Hawai‘i Appleseed Center for Law & Economic Justice and QMark Research poll conducted in 2016 that revealed that nearly half of Hawai‘i families are living paycheck to paycheck.

It also found that six out of seven survey respondents support the concept a tax credits that let working families keep more of what they earn. In Hawai‘i, there are many working families who are doing their best, but could use assistance. A Working Family Credit is one way to help them. Read the full report.