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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

State Budgets and Cuts to Services

  • Improved tax collections can’t keep pace with states’ fiscal needs, survey finds, By Michael Cooper, June 2, 2011, New York Times: “Half the states plan to cut spending on higher education, and nearly a third plan cuts to elementary and high schools. Public assistance and transportation face cuts. Eighteen states have proposed slashing aid to struggling cities and local governments. Some states will raise taxes or fees. Others plan to lay off workers, or cut their salaries or benefits. Although state tax collections are picking up after several brutal years, a new survey by the National Governors Association and the National Association of State Budget Officers found that states still expect to collect less tax revenue and spend less money in the coming fiscal year than they did before the Great Recession began. At the same time the cost of Medicaid, the biggest single portion of state spending, has been rising, driven up by higher enrollment as many people have lost their jobs and their health insurance…”
  • Education, social services are big losers in state budget, By Ray Long and Monique Garcia, May 31, 2011, Chicago Tribune: “Education and social services are the losers under a state budget lawmakers put the finishing touches on Tuesday. The $33.2 billion spending plan is about $2 billion less than what Democratic Gov. Pat Quinn wanted. Spending less was on the minds of many lawmakers after they approved a 67 percent increase in the income tax rate in January that was billed as mostly temporary…”