- February 15, 2018
- Ron Deutsch, David Dyssegaard Kallick, Jonas Shaende, Cyierra Roldan, Shamier Settle, Melissa Krug, Brent Kramer, and Xiao Cheng
The Trump Administration’s tax law, looming federal budget cuts, multi-billion-dollar state budget deficits, glaring unmet human and physical infrastructure needs throughout the state…this year’s New York State budget negotiations are taking shape against a worrisome and uncertain backdrop. The president and congress are threatening to dismantle decades-old federal entitlement programs, make drastic cuts to programs that help millions of struggling New Yorkers, and create a hostile environment for the state’s four and a half million immigrants. The state has an important role to play to help make life better for all New Yorkers—and we must provide protections to our residents even if the federal government won’t. Based on last year’s congressional budget resolutions and what lies on the horizon in terms of cuts to federal programs, we know that things are going to change, and likely not for the better. The policy ideas advanced by Washington thus far do not bode well for New York State. While New York sends more in tax dollars to Washington than we get back, over one-third, or $57 billion, of New York State’s FY 2019 All Funds Budget is comprised of federal funds. The potential for substantial cuts in domestic spending poses gargantuan challenges for the state budget and budgets of local government entities throughout the state.
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In the fourth quarter of 2017, Wisconsin added 12,500 jobs, most of them in October. In contrast to the strong October, in December, Wisconsin actually lost jobs. Still, over the quarter, the state’s job base grew. Growth was driven by private sector gains, with the state adding 15,200 private jobs. The state lost 2,700 public sector jobs across the quarter capping off a very weak year in the public sector. Wisconsin’s ended 2017 with 3,300 fewer public sector jobs than a year ago. Still, as with the quarter, so with the year. Private sector growth meant that the state jobs base grew 1.4 percent: Wisconsin added 40,200 jobs in 2017. The unemployment rate continues to drop slowly across the nation and Wisconsin is not an exception. Unemployment in Wisconsin stands now at 3.0%, significantly below the level of the end of 2016 and at its lowest point since the recession.
State policy can also rig the system against workers. The Ohio legislature has barred local governments from improving working conditions, banned local hire ordinances that help set aside work for local residents, and passed tax cuts that favor the wealthiest Ohioans at the expense of our roads, schools and health care. But there are solutions. We can strengthen Ohio’s working people and create an economy that works for everyone by helping workers to speak up together, raising wages, and investing in communities instead of corporations.
State and federal policy makers can make sure all Ohio’s working people – not just the top 1 percent – can enjoy a decent life free from economic insecurity. Although this is by no means a definitive list[5], this report offers a new path forward with practical policy solutions that can be implemented today.
The most prosperous states are anchored by an educated and healthy workforce and offer opportunities for people to innovate and contribute. Moving into the 2018 statewide elections and subsequent governor’s administration, Georgia leaders can seize a golden opportunity to chart a better economic course. People-Powered Prosperity details a new vision for how state lawmakers can pursue that strategy and ways they can responsibly pay for it. The report outlines a public investment plan aimed at four strategic goals, which include eight specific policy recommendations such as targeted funding hikes for public schools and an ambitious ramp-up of assistance to help families afford child care. We also present a case to show how Georgia can afford to raise $1 billion in new annual revenues as a meaningful down payment on the strategy, a shared investment of reasonable scope.