Moreover, state and local governments,
facing balanced budget requirements, have responded to the large and sustained decline in their revenues owing to the deep recession and slow recovery by reducing their purchases of real goods and services.
TAGS:
balanced budget requirement, budget, credit rating, debt, income tax, Mike Madigan, progressive income tax, Spending, spending cap, taxes
TAGS:
balanced budget requirement, Bruce Rauner, budget, DCEO, debt, Fitch Ratings, Illinois Constitution, Illinois General Assembly, Jim Durkin, Mike Madigan, Spending, unpaid bills
Many states have what are called «fiscal constitutional requirements,» or provisions in state constitutions that dictate the bounds of legislative fiscal activity (i.e.:
a balanced budget requirement).
Because of
these balanced budget requirements, states can not borrow to fund current services.