Government Finance: Limits Legal limitation strategies –Property tax reforms –Revenue limitations –Expenditure limitations Income tax –Ties to federal policies? –“Circuit breakers” –Targeted tax credits?

Government Revenues: Future? New sources: Fees? Lottery? Taxing services? Taxing intangibles? Electronic commerce: Who gets revenue stream? Distribution of revenue among levels of government? Differing strategies for differing services?

Major Issues Facing States (Policy) Finance & Revenue Questions Economy –Dislocation & joblessness: plant closings, off-shoring, structural changes in economy –Economic development in response: Strategies Competition Population & demographic changes: –Immigration/out-migration, –Rural/urban –Aging –Wealth/poverty Families/social services/welfare (and reform)

Issues Facing States (Policy) National Security: preparation, costs Health –Medicaid –Uninsured –Costs of state employee coverage –Delivery systems: availability & quality –Medical malpractice costs –Chronic illness and related Education –Pre-school, elementary/secondary (& “No Child Left Behind”) –Higher education –Retraining for changing economy

Issues Facing States (Policy) Environment –“Smart growth” and land use –Air & water quality, cleanup, transportation Justice system: Prisons, Death penalty, costs Government service delivery: –design, privatization, scope, finances –Infrastructure problems Federal/state/local balance & federalism –Unfunded mandates –Preemption (in many areas) –Devolution –Role of non-profits re social welfare

State Government: Legal Issues Separation of powers (legislature, executive, courts) Legislatures: term limits, campaign financing, political polarization Government agencies: Governor’s role; delegation to agencies, structural reorganization, relationship with feds/localities, leadership Judiciary: selection and “dispute resolution” Accountability to citizens –Initiative & referendum (direct democracy) –“Open government” in electronic age