The Impact of a New Recession on State and Local Governments

Rockefeller Institute Senior Fellow Donald J. Boyd examines the impact a new recession is likely to have on state and local governments. Boyd warns that, unless the economy rebounds, volatility in most state revenue systems may force midyear spending reductions this year and other unpopular policy actions in 2009. Boyd’s new research on both states and localities, in a March 14 presentation to analysts at Fidelity Investments, expands upon his recent paper that analyzed how state finances would be affected by a recession. Both reports are available here.