State Budget Crises: Why They Matter and Ideas for Fixing Them

The Mercatus Center at George Mason University recently released a policy brief that offers suggestions on how states can begin to climb out of their fiscal holes In Seven Key Aspects of Governing During Crisis, Maurice McTigue and Daniel M. Rothschild present a toolkit of seven ideas and procedures for state policy makers to evaluate budget shortfalls and find opportunities for reform. Drawing on domestic and international experiences, they suggest that the current gap between revenues and expenditures presents policy makers with an opportunity to reevaluate the functions and business practices of their state governments, not only to survive the current economic downturn, but in order to thrive in its aftermath.