Volcker Alliance Sheds Light on Faulty State Budgeting Practices in New Report
The Volcker Alliance today released a report examining in detail the budgeting practices of California, New Jersey and Virginia, assessing the effectiveness of each state’s practices. The report highlights the need for effective and transparent budgeting practices by “shining a spotlight on opaque and confusing practices and by identifying more appropriate approaches” when creating state budgets and fiscal policy. With tax revenue barely recovering since the last recession and federal funding limited by Congressional spending restrictions, states from coast to coast are tempted to resort to gimmickry to produce balanced budgets that may be in balance in name only. A primary aim of the report is to lay the groundwork for a common approach toward responsible budget practices in all 50 states, including developing a framework for a scorecard with respect to budgeting and financing practices, and providing incentives for officials to clarify financial issues and encourage debate on basic policy choices.