Financing State Government in the 1990s.

• Author: Savistky, Linda R.

Denver, CO: National Conference of State Legislatures (NCSL) and the National Governors' Association (NGA), 1993. (116 pp)

Reviewed by Linda R. Savitsky, director of municipal finance services for the State of Connecticut, and member of GFOA's Executive Board.

Financing State Government in the 1990s is a report on current issues regarding state tax policies in all 50 states. This report represents a collaborative effort on behalf of five professional organizations representing various state officials: the NCSL, the NGA, the Federation of Tax Administrators, the Multistate Tax Commission and the National Association of State Budget Officers. It is well written and concise.

As stated in the preface, this report is intended "as a summary of conditions affecting state tax systems, an overview of the tax systems themselves, an examination of current problems with an analysis of the causes of those problems, and a range of options that state policy makers might pursue..." The report does not advocate any specific policy recommendations, rather it identifies the major issues that affect the various types and sources of state revenues used throughout the country. It provides a historical perspective on how each of the major types of state revenues, and its respective policies, has evolved over time. The report discusses a number of factors, internal and external, that have created problems with the current systems. The report provides a number of options for states and their policy makers to consider as they look for new methods to finance state operations. The report does not discuss the expenditure policies of the states. There are charts, graphs and numerous end notes that provide good illustrations and sources of additional data for the issues being discussed.

The study focuses on the changes that have occurred in the United States since some of the basic tax systems were originally designed. A number of factors have influenced the states' economies that, in turn, have affected their tax policies. The country's economy has evolved into a multistate- and international-based system. The economy has shifted from the production of tangible goods to services. The population is aging...