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11. Don’t Go Chasing Windfalls: California’s 2021-2022 Budget

Author:
Brian DiSarro and Wesley Hussey
Publication Date:
01-2022
Content Type:
Journal Article
Journal:
California Journal of Politics and Policy
Institution:
Institute of Governmental Studies, UC Berkeley
Abstract:
Amidst a global pandemic, a gubernatorial recall election, and a shaky economy, California had one of its best budget years in recent memory. Flush with cash, the state was able to make unprecedented investments in education, health, and social welfare programs, provide direct stimulus payments to many California residents, and still set aside money in its rainy-day fund. Governor Newsom handily defeated the recall effort, and the budget outlook for 2022 looks bright. 2021 was a tumultuous year, but California is proving that it’s once again the “Golden State”.
Topic:
Budget, Fiscal Policy, Pandemic, and COVID-19
Political Geography:
California, North America, and United States of America

12. The Year Without Tourism: Hawai‘i’s FY2022 Pandemic Budget

Author:
Colin D. Moore
Publication Date:
01-2022
Content Type:
Journal Article
Journal:
California Journal of Politics and Policy
Institution:
Institute of Governmental Studies, UC Berkeley
Abstract:
Hawai‘i’s economy was devastated by the COVID-19 pandemic. The effective closure of the tourism industry created an unemployment crisis and led to a dramatic decline in tax revenues. Nevertheless, Hawai‘i managed to avoid mass layoffs of public employees and draconian cuts in public services because of federal relief funds. The $15.9 billion budget for FY2022 restored funding to most departments, but the state’s dependence on the visitor industry has left it particularly vulnerable to future pandemic travel restrictions.
Topic:
Tourism, Budget, Fiscal Policy, Pandemic, and COVID-19
Political Geography:
North America, Hawaii, and United States of America

13. Idaho FY22: Recommendations, Appropriations, and Partisanship

Author:
Elizabeth Fredericksen and Ana-Maria Dimand
Publication Date:
01-2022
Content Type:
Journal Article
Journal:
California Journal of Politics and Policy
Institution:
Institute of Governmental Studies, UC Berkeley
Abstract:
This paper presents an overview of the State of Idaho’s FY 2022 budget recommendations and appropriations in the context of demographic changes, economic conditions, and politics. The Executive Budget for FY 2022 notes Governor Little’s historical support of education, job growth, economic opportunity, and fostering an environment for Idaho to avoid citizen migration to other states. However, this policy, along with the COVID-19 exodus, has resulted in a large influx of people from other states with the commensurate housing and infrastructure demands. As most Idaho budgets tend to move incrementally in support of education and infrastructure in the context of very healthy revenues, the state is likely to weather, though with some ambivalence, economic fluctuations. However, partisan tensions threaten education and safety net programming.
Topic:
Governance, Fiscal Policy, Pandemic, and COVID-19
Political Geography:
North America, Idaho, and United States of America

14. Oregon 2020-21: Budgeting During COVID

Author:
Mark Henkels and Brent S. Steel
Publication Date:
01-2022
Content Type:
Journal Article
Journal:
California Journal of Politics and Policy
Institution:
Institute of Governmental Studies, UC Berkeley
Abstract:
Oregon in 2020 and 2021 resembled other Western states: crisis on crisis. COVID, the COVID recession, forest fires and ice storms, and polarized politics dominated the news. Despite these challenges, the state’s fiscal situation turned out very positively. President Biden’s American Rescue Plan and the bipartisan Infrastructure Investment and Jobs Act signed in November 2021 provided many billions to the state for 2021 and will cover diverse infrastructure needs over the next five years. This paper analyzes the surprisingly strong general fund and federal fund situations created by the COVID era and considers the political implications of the state’s fiscal situation.
Topic:
Budget, Fiscal Policy, Pandemic, and COVID-19
Political Geography:
North America, United States of America, and Oregon

15. Utah: Strategic Investments in the Wake of a Pandemic

Author:
Jennifer Robinson, Natalie Roney, and Johnson Ball
Publication Date:
01-2022
Content Type:
Journal Article
Journal:
California Journal of Politics and Policy
Institution:
Institute of Governmental Studies, UC Berkeley
Abstract:
Threatening economic impacts from the COVID-19 pandemic on Utah’s economy proved to be short-lived, due in part to early budget cuts, federal economic relief, and an expanding economy that out-performed expectations. Subsequently, FY22 provided the Utah Legislature opportunities to invest in education, infrastructure, and social services. Legislators also used this opportunity to cut taxes for veterans, the elderly population, and families. As the state’s population continues to grow at record rates, Utah decisionmakers must grapple with rising housing prices and record-high rental rates. This report highlights specific challenges and opportunities Utah faced through negotiating a record-high budget of $25.6 billion and provides an overview of Utah’s economy and changing demographic makeup.
Topic:
Investment, Fiscal Policy, Pandemic, and COVID-19
Political Geography:
North America, United States of America, and Utah

16. Budgeting in Pandemic Times: Shutdowns, Social Unrest, and Spending in Washington State

Author:
Michael Artime, Erin Richards, and Francis Benjamin
Publication Date:
01-2022
Content Type:
Journal Article
Journal:
California Journal of Politics and Policy
Institution:
Institute of Governmental Studies, UC Berkeley
Abstract:
The citizens of State of Washington have, like individuals throughout the country, had to navigate unprecedented personal and economic hardship. The supplemental budget passed by the legislature during the 2021 legislative session represents an attempt to address some of the issues that presented as an outgrowth of the pandemic. However, the legislature also considered significant policy changes with respect to, among other items, the environment, taxation, and education. These policy debates were, at times, rather contentious and are indicative of the partisan fault lines existing throughout the state.
Topic:
Budget, Fiscal Policy, Pandemic, and COVID-19
Political Geography:
Washington, North America, and United States of America

17. Time for a Significant Reimagining of Government in Wyoming?

Author:
Robert Schumann and Jeffrey Jensen
Publication Date:
01-2022
Content Type:
Journal Article
Journal:
California Journal of Politics and Policy
Institution:
Institute of Governmental Studies, UC Berkeley
Abstract:
Despite $430 million in spending reductions and the loss of 324 state positions, Wyoming’s 2021 supplemental budget reflected an improved pandemic-driven economic climate. Recent budgetary optimism was attributed to increased performance in energy production and pricing, pent up demand for tourism and travel, and higher than expected sales tax revenues. Continued reliance on Wyoming’s Permanent Mineral Trust Fund, and the state’s attachment to the remainder of its boom-and-bust revenue structure, left surprisingly little appetite for discussions of revenue diversificatioan. Instead, “right-sizing” state government to fit the current revenue stream seems more consistent with the spirit of the times.
Topic:
Economics, Budget, Fiscal Policy, Pandemic, and COVID-19
Political Geography:
North America, United States of America, and Wyoming

18. Lessons from the Inflation of 2021-202(?)

Author:
Asha Banerjee and Josh Bivens
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Starting in mid-2021, inflation in the United States rose to levels not seen since the early 1980s. This inflation followed on the heels of the economic shock imposed by the global COVID-19 pandemic and the significant fiscal policy interventions meant to smooth the fallout of this shock. As of October 2022, inflation – both headline and core measures stripping out food and energy prices – remained at historically high levels, though there are significant signs of softening in the near-future. This episode has sparked furious debate over the proper policy response, and has exposed how little innovative thinking has been done on inflation by either macroeconomists or policy analysts since the 1980s price acceleration was ended by the Volcker shock. This paper identifies a number of key questions raised by the inflationary outbreak of the past 18 months and offers some answers. An extremely brief summary of these questions and answers is provided below, with the rest of the paper expanding on these points.
Topic:
Economy, Inflation, Macroeconomics, Fiscal Policy, and COVID-19
Political Geography:
North America and United States of America

19. COVID-19 and the U.S. Fiscal Imbalance

Author:
Jeffrey Miron
Publication Date:
12-2020
Content Type:
Commentary and Analysis
Institution:
The Cato Institute
Abstract:
Policymakers must do something to slow the growing debt burden or else face a major fiscal meltdown. Proposals such as Medicare for All and the Green New Deal would only make the looming fiscal crisis worse. Before COVID-19, the U.S. debt burden was large and on an unsustainable path under reasonable assumptions about economic fundamentals. Standard policy responses, such as higher taxes or lower discretionary spending, could not substantially slow the growth of the U.S. debt burden; only reduced growth in entitlement spending, especially on Medicare, had the potential to avoid eventual fiscal default. COVID-19, the ensuing recession, and the subsequent policy responses have all increased U.S. deficits substantially, potentially altering these conclusions. But these events are likely to be temporary and may be partially offset by other demographic and economic changes related to COVID-19. As a result, the pandemic did not substantially alter the projected path of the U.S. fiscal imbalance. That bit of good news does not alter the grim long‐​term U.S. fiscal outlook. The most effective way to slow the growth of the debt burden is to cut entitlement spending substantially.
Topic:
Debt, Tax Systems, Fiscal Policy, COVID-19, and Fiscal Deficit
Political Geography:
North America and United States of America

20. The Costs of Covid: Australia’s Economic Prospects in a Wounded World

Author:
John Edwards
Publication Date:
08-2020
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
Despite Victoria’s second wave of infection, Australia’s economic recovery from the coronavirus is underway. The bitter aftermath includes high and rising unemployment, vastly increased government debt, and a markedly less congenial global economy. Though formidable, the fiscal challenge is well within Australia’s means, especially if the Reserve Bank remains willing to acquire and hold Australian government debt. It may need to do so anyway to suppress an unwelcome appreciation of the Australian dollar in a world where major central banks are committed to low long term interest rates. Australia’s increasing integration into the East Asia economic community offsets the drag from the major advanced economies, but the US–China quarrel and the dislocation of global trading and investment relationships it threatens heightens the tension between Australia’s economic and security choices.
Topic:
Debt, Economy, Fiscal Policy, Unemployment, and COVID-19
Political Geography:
China, Asia, Australia, North America, Asia-Pacific, and United States of America