By Chris Eshleman
In late January, the US Census Bureau compiled and released data showing that in 2012 state governments spent well beyond their means — for the third time in four years. Revenues lagged behind expenditures in 34 states.
The implications of state deficits for city-level fiscal health are myriad. They cover everything from the future of revenue-sharing programs and borrowing rates to state legislatures’ ability to compile healthy annual capital budgets.
But when you break the numbers down, the implications were worse for some states than for others. The 20 states with at least one legacy city overspent in 2012 by $391 per state resident — that’s the amount that state expenditures eclipsed revenues divided by the number of state residents (as counted in the 2010 census).… Read More