South By North Strategies, Ltd.

A new report by the Center on Budget and Policy Priorities outlines a “balanced approach” for states to use in confronting their budget crises.

When states face a deficit, an across-the-board reduction in spending is often the first response that comes to the minds of policymakers. But as this report shows, states in fact have a far wider range of policy choices they can employ to close deficits and maintain important services — the need for which grows even as revenues falter. Many of these budget-balancing policies do far less damage than budget cuts do to state economies. Some have the added advantage of strengthening the long-term fiscal situation of the state — beyond the immediate need to achieve a balanced budget this year or next.
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The key is to construct a balanced approach to state budget balancing, instead of overly relying on spending cuts. The enormity of deficits in many states suggests that no one strategy can be sufficient on its own to fully close deficits. By using a balanced approach, states can minimize harm to the individuals, families, and businesses that depend on state services, and can also avoid further damaging economies already made fragile by the pressures of a recession.