Stateline Stories

Report: Delaware Has Lowest Business Taxes; Alaska Highest

New report says businesses pay lower taxes in Delaware, Oregon and Utah; higher taxes in Alaska and North Dakota. But what your company pays may depend on the business you’re in.

Not So Fast: Tax Revenue Estimates From Legal Marijuana May Not Materialize

Proponents of legalized recreational marijuana touted millions in taxes that could be collected. But don’t count that money yet.

Legislation Would Take State Mineral Revenue off Chopping Block

Proposals in Congress would save tens of millions of dollars in mineral payments to states from sequestration’s sweeping cuts.

Mortgage Deduction Rates Vary Widely Among States

The mortgage interest deduction is a tax break that benefits middle-class Americans all over the country—or does it?

Delay in Implementing Sequester Forces Deeper Unemployment Cuts

Unemployment benefits were already on the chopping block thanks to sequestration. But in three-dozen states, the pain for the long-term unemployed is even greater because states have been slow to enact the across-the-board federal cuts.

Small Businesses Seek Relief from ACA Penalties

Big fines for small businesses are among the possible unintended consequences of the Supreme Court’s decision to make the Medicaid expansion optional for states.

Federal Road Fund Could Go Broke by 2015

With federal transportation money drying up, will the burden fall to the states?

Infographic: Spending on Public Health Drops

Our public health systems are meant to be at the forefront of prevention, but state and federal investments are shrinking.

NFL Plays Offense to Get Public Money for Stadiums

Why are so many teams asking taxpayers to build new pro football stadiums this year?

Illinois Follows Nevada with Highest Unemployment

State unemployment numbers fluctuate and once again Nevada tops the country, but the state that comes in second is new.

State Revenues Reach Record High After Recession’s Decline

The Great Recession hurt state tax collections, but many have rebounded and total revenues reached record highs last fiscal year.

States’ Free Online Tax Filing Services Often Overlooked

Some 20 states allow taxpayers to file income tax online for free. Is your state one of them?

Obama Budget Calls for More Competitive Grants

The White House budget, released Wednesday, envisions making states compete with one another for a host of federal grant programs, similar to the Race to the Top education program.

States Rack Up Victories in Bids to Collect Online Sales Taxes

After more than a decade of trying, state officials think they may get to collect billions of dollars of taxes on online sales soon. Find out why.

Should States Get Out of the Booze Business?

Pennsylvania is as close as it has ever come to privatizing liquor sales following a House vote in March. Tricky questions await the Senate as it considers whether to modernize or dismantle the state’s multifarious system.

Sequester Will Force Universities to Scale Back Scientific Research

The sequester is already limiting the amount of money universities can offer to graduate students.

Sequester Cuts at Justice Department Threaten Local Drug Investigations

The partisan gridlock in Washington, D.C. threatens to curb drug investigations in rural communities.

Which States Tax Your Travel the Most?

Your vacation dollar won’t go as far in some destinations because of state and local travel taxes.

Florida Governor Knocks Obama for Unpaid Port Bill

Florida Gov. Rick Scott wants more than just a presidential visit to Miami’s port; he wants the federal government to pay its share of the bill for big improvements under way at Florida’s biggest ports.

U.S. Senate Passes Test Vote on Online Sales Tax

A symbolic, nonbinding vote was taken Friday on a proposal that would allow states to collect sales tax for purchases made online.

Congress May Reverse Some of Sequester’s Cuts to WIC

An effort to keep the federal government open could also deliver relief to pregnant women, mothers and young children in need of food.

Higher Ed Cuts Mean Major Tuition Hikes

Tuition at public colleges in Arizona and California has spiked more than 70 percent over the past five years, the result of massive cuts to state higher education funding in those states and most others.

The End of ‘No New Taxes’ in Minnesota

After more than decade of budget deficits balanced without tax increases, Democrats have taken power in Minnesota promising a different path.

Congress Debates Highway Safety Funding Cuts

Budget battles on Capitol Hill could cost states federal money to fight distracted driving and to roll out graduated licenses for teen drivers.

The 5 States Most Vulnerable to Sequestration’s Education Cuts

Automatic federal budget cuts will slash more than $1 billion in K-12 education dollars this year, paring everything from Title I money for low-income students to school improvement initiatives.

Automatic Defense Cuts Will Deal Blow to States

A Stateline analysis shows automatic defense spending reductions will hit defense contractors hard. This sector comprises as much as 8 percent of some state economies.

States in Recovery: Revenues

For nearly half the states, recovery is tenuous, with revenues still below peak levels before the recession.

Governors Fear Loss of Bond Tax Exemption

A panel of top tax policy analysts has warned the nation’s governors they face an ongoing risk of increased borrowing costs if President Obama and Congress curb or eliminate the tax exemption on municipal bonds to bring down the federal budget deficit.

Backlash for Red-Light Cameras Hasn’t Slowed Spread

Throughout the country, state legislatures are considering how broadly to use traffic cameras, but the number of communities using them keeps growing.

States with Heavy Military Presence Hurt Hardest

The White House published a 50-state list of potential impacts from the automatic budget cuts known as sequestration. States that rely heavily on military spending would be hurt worst.

Why Tax Revision Is an Inexact Science

Several governors are talking about major change in their state tax structures this year. How do they know how much money a revised tax system will bring in? Often, they don’t.

Can Texas Beat Its Fund-Balance Addiction?

To balance the budget, lawmakers rely on money they can’t spend. Will that change this year?

Where Is Manufacturing Making a Comeback?

After years of losing jobs to lower-cost, overseas operations, several Rust Belt states are seeing a resurgence of manufacturing, led surprisingly by Michigan. In the last three years, Michigan gained nearly 70,000 manufacturing jobs, the most of any other state, according to the latest government figures. Indiana

Will Moderation Win in Texas?

The budget has improved dramatically in Texas, but spending more isn’t necessarily an easy sell.

Debt Ceilings Without Drama

Most states have rules that limit how much they can borrow. Unlike Congress, however, state lawmakers have almost never used the limits to engage in high-stakes political confrontations – at least not yet.

Diving Deeper: Nebraska Governor’s Thinking on Tax Cuts, Medicaid

Few governors are in as enviable a position as Nebraska’s Dave Heineman. The Republican has one of the highest approval rates of any governor in the country, and his state has one of the lowest unemployment rates.

Gas Tax Loses Favor as Governors Look for New Transportation Money

In the search for more transportation money, governors and state lawmakers are largely avoiding one of the most obvious and straightforward funding sources: state gasoline taxes.

Fracking for State Dollars

The boom in oil and gas production has some states taking another look at the kinds of taxes they levy.

As Legislatures Become More Partisan, Nebraska Holds Out

LINCOLN, Nebraska — Both in law and in practice, Nebraska has the least partisan legislature in the country. To supporters, that makes it a national model. To the state’s dominant Republican Party, however, that sometimes makes it a political obstacle.

States’ Fragile Recovery at Risk

State budgets are finally climbing out of the fiscal hole they’ve been in for the last four years. But Washington isn’t making it any easier for them.

Old Money, New Decisions in Oregon

Almost a decade after balancing its budget with millions of dollars earned off the massive nationwide tobacco settlement reached in 1998, Oregon lawmakers have a second chance this year to put the settlement money to different use.

GOP Lawmakers Look to Abolish Income Taxes

Republican lawmakers in several states are taking aim at something no state has done in more than three decades: eliminate income taxes.

Seniors Are New Target for Tax Increases

Over the years, states have carved out ever more generous tax breaks for the elderly. Now, Kentucky and a few other states are beginning to question whether these policies cost too much.

Cuomo Proposes “NY Green Bank” To Spur Renewable Energy Investments

Governor Andrew Cuomo has proposed creating a $1 billion “NY Green Bank,” a quasi-independent authority that would provide capital for energy projects, aiming to improve coordination across state government and open the door to projects that might struggle to attract investment on their own.

Arizona Can’t Divert Land Trust Fund, Court Rules

The Arizona Legislature violated the constitution when it tapped a trust fund earmarked for education to help plug the state’s budget gap, the Arizona Supreme Court has ruled.

Surpluses Await Some States in 2013 Sessions

The surpluses that state lawmakers will find waiting for them this year may not go very far.

Uncertainty from Washington Continues for States

States trying to craft their budgets for the upcoming year will have to wait until March for more details from Washington.

Brownback's Dilemma: How to Balance the Kansas Budget After Massive Tax Cuts

Kansas made a big gamble last year that huge income tax cuts would eventually bring prosperity. Right now, though, they’re causing painful decisions.

Election Year Brings Big Changes in State Policy

From battles in the legislatures to battles at the polls, Stateline reporters traveled all over the country in 2012 reporting on news from the states.

Congress Likely to Postpone Online Sales Tax Collection

A bipartisan group of state elected officials has pushed hard for federal legislation that would allow states to require the collection of sales taxes on internet purchases. For now, though, that effort hasn’t overcome congressional gridlock.

Maine Tax Cuts May Outlive Republican Rule

Democrats won legislative victories campaigning against tax cuts, but may not have the power or inclination to repeal them.

As Federal Immigration Overhaul Looms, California Schools Slash Adult English Classes

Requiring immigrants to learn English would likely be a key component of any federal immigration overhaul. But widespread cuts to English programs in California show that even that requirement may not be easy to roll out.

Fiscal Cliff Jitters Could Boost Early State Tax Revenue

When filmmaker George Lucas sold his company and the Star Wars franchise to Walt Disney Co. this fall, he saved hundreds of millions of dollars in state and federal taxes by not waiting until next year when higher tax rates are anticipated. He’s hardly alone.

New York, California Seek Ways to Help Fiscally Fragile Cities

Top officials in two of the nation’s largest states have decided they need to do more to avert disaster in communities that are having budget trouble.

Medicaid Trumps `Fiscal Cliff’ as Top State Budget Concern

Medicaid is still the biggest budget worry for the coming year, according to a new survey of state legislative directors to be released soon. Nowhere is the problem larger than in Texas, which faces a $4.3 billion Medicaid deficit.

Tax Breaks for Sale: Transferable Tax Credits Explained

States offer billions of dollars of tax incentives that businesses can sell to other businesses. Here’s why they do it and how it works.

Connecticut Governor Looks Back on a Tough Two Years

Connecticut has been hit three times in the last year by natural disasters and now faces a new $415 million budget shortfall. In an interview with Stateline, the governor looks ahead and spells out how he plans to balance the budget.

Oregon Lawmakers To Consider Nike Expansion in Special Session

Governor John Kitzhaber has asked lawmakers to convene in special session Friday to consider legislation aimed at guaranteeing that Nike will expand in Oregon rather than elsewhere.

Costly Prison Phone Calls Frustrate Families

Most state prisons impose a surcharge on calls made by inmates. Many of the inmates’ families have trouble paying it.

Jobless Benefits At Risk in Fiscal Cliff Debate

Amid the fervor over the fiscal cliff in Washington, there’s one federal program also facing a Dec. 31, 2012 deadline that if allowed to pass could cost unemployed Americans thousands of dollars and deprive states of crucial federal funding that’s helped them weather the worst of the Great Recession.

More States Dig into Libor Scandal

As lawsuits and inquiries mount, more states are looking into the rate-rigging scandal.

Cyber Monday Sparks Calls for Online Sales Tax

A coalition of small business leaders is hoping this will be the last Cyber Monday of the era without online sales taxes. It is pressing Congress to pass legislation requiring most online retailers to collect and remit sales taxes.

After Tax Hike, Arkansas Plans Highway Building Boom

Transportation funding advocates have suffered setbacks in several states recently. In Arkansas, they won big.

To Raise Revenue, Raise Tobacco Taxes, Kentucky Commission Says

Kentucky’s Blue Ribbon Commission on Tax Reform recommended the state increase its cigarette tax from 60 cents to $1 per pack, along with a proportional hike on other forms of tobacco.

Oklahoma Among States Limiting Property Taxes

Lowering property taxes is always popular, and results from the November 6 elections show this year was no exemption

Budget Cuts, Revenue Swings Await States In ‘Fiscal Cliff’ Drama

State budgets and economies would be hit particularly hard by the automatic tax increases and spending cuts caused by the looming “fiscal cliff,” if it’s not averted, according to a new report by the Pew Center on the States’ Fiscal Federalism Initiative, which explored how the fiscal cliff would affect states in a number of ways.

In Massachusetts, Mobilizing Private Investment for Public Good

Massachusetts to tap private investors who want to help pay for money-saving public programs

Historic Gay Marriage, Marijuana Measures Win Approval

After years of rejecting same-sex marriage at the ballot box, three states endorse it.

Infographic: Ballot Measures Gave Voters Say on Divisive Issues

Voters in 38 states will decide 174 statewide ballot measures on Election Day. Are any on your ballot?

Tax Pledge Permeates New Hampshire Politics

New Hampshire has no income tax or sales tax. The candidates for governor want to keep it that way. But despite that, the debate over taxes never really goes away.

Obama's and Romney’s Tax Plans: What Do They Mean for States?

Overlooked during the presidential campaigns is how Obama and Romney’s tax proposals could affect states. Here’s a look.

Hawaii Judge: Online Travel Companies Don’t Owe Unpaid Taxes

Online travel companies that book hotel rooms in Hawaii have not shortchanged the state millions in tax remittances, a state judge ruled Monday, continuing a losing trend for governments challenging the companies’ tax practices.

School Ruling Roils Race for Washington Governor

School funding is playing an outsized role in the Washington gubernatorial race, but it may be a while before new money comes from Olympia.

Texas Awaits Ruling on Franchise Tax’s Fate

The Texas Supreme Court is expected within days to decide whether the state’s franchise tax, designed to cover more businesses and raise more revenue, is constitutional.

States Struggle With Unemployment Funds Still in the Red

More than $26 billion in lingering debt and billions in mounting interest have forced a number of states to scale back unemployment benefits, raise taxes, tap general funds and even turn to the private bond market.

Survey: As State Budgets Improve, So Does Trust in Government

A Gallup survey estimates that 65 percent of Americans have expressed a “great deal” or “fair amount” of trust in their state governments, a level not seen since the days before the financial crisis.

Provo Stars in Utah’s Economic Recovery

Utah’s recovery has been driven by construction projects and high-tech start-ups with Provo, Forbes’ top pick for business and career opportunities, a driving force.

Former Florida Regulators Want Water Funding Boost

A group of 20 former water regulators in Florida is urging Governor Rick Scott to restore funding to the state’s five water management districts, whose budgets have shrunken dramatically under the governor.

Sequestration: How a Spending Stalemate Would Affect the States

There is still time for Congress to avoid the “fiscal cliff” that would force billions of dollars in spending cuts and tax increases at the start of next year. But whatever happens, the states run the risk of being big losers.

Oregon to Vote on Changing Unique Tax Refund

For many years, Oregon has been the only state in the country where tax revenue that exceeds what the state estimated it would collect is automatically refunded to taxpayers. For many years, much of Oregon’s political leadership has complained that

California Scales Back Pension Benefits

A law signed by California Governor Jerry Brown on Wednesday will scale back retirement benefits for public employees in an effort to rein in the costs of the state’s woefully underfunded pension systems.

Alabama’s Largest County Faces Bankruptcy Without State Help

History, a fear of raising taxes, dissuaded Alabama from helping its largest county avoid insolvency

Heat Wave, Budget Cuts Strain Utility Safety Net

Budget cuts and a blistering hot spell wave left states short on cash this summer while tackling high energy demand. Now many worry about having enough heat when winter comes.

Illinois Passes on Pensions, Boots Lawmaker

The Illinois Legislature emerged from a special session Friday with one less lawmaker and no plan to address the state’s soaring pension obligations.

Illinois Lurches Forward, One Budget Crisis at a Time

Illinois faces a series of budget problems, including its latest crisis on pensions. But the drumbeat of bad news makes it easy to miss the big steps the state has already taken.

With VP Pick, Romney Endorses Fed-State Overhaul on Food Stamps, Medicaid

By choosing Paul Ryan as his running mate, Mitt Romney has endorsed large changes in federal-state relations, particularly in dealings with food assistance and health care.

A Likely Reprieve for Food Stamp Program

The food stamp program has been facing the threat of deep reductions that would cut off benefits for millions in states all over the country. But a stalemate in Congress may stave off the pain.

Dire Warnings in Alabama Budget Vote

Alabama’s leaders want to transfer oil and gas revenues to the state’s beleaguered general fund. But voters have to approve the deal.

Are States’ Unemployment Insurance Loans Dragging Down Economies?

Most states are still paying off those unemployment benefits that went out to millions of those without work during the recession, but it’s the way some are doing it that raises concern.

Tennessee’s Haslam To Relay Governors’ Wish For Online Sales Tax

A congressional committee will hear testimony Tuesday (July 24) on a bill that could send billions of dollars to the states each year. Tennessee Governor Bill Haslam and Wayne Harper, a Utah state representative, are among those scheduled to appear before the House Judiciary Committee to comment on the “Marketplace

States Consider Politically Fraught Welfare Waivers

States consider their options — and the politics — of the federal welfare waivers proposal.

Infographic: Annual State Lottery Sales

New York led all states in lottery sales in fiscal year 2011. Massachusetts residents spent more per capita than residents of any other state.

Report: Without Major Overhauls, State Budget Crises Will Linger

A lack of government transparency and a focus on federal budget woes have masked state budget crisis, leaving them largely unaddressed, according to a report released Wednesday. Without major change, the report warns, soaring costs of Medicaid and shrinking tax collections will only worsen the problem.

Rhode Island Faces an Investment Gone Awry

After an investment many questioned from the beginning, Curt Schilling’s 38 Studios bankruptcy has left Rhode Island with a significant debt to pay, and facing questions over the future of economic development efforts.

Health Care Ruling, Elections Dominate Governors’ Meeting

The typical low-key summer gathering of the nation’s governors was anything but subdued this year. The U.S. Supreme Court’s recent decision leaving it up to the states whether to expand their Medicaid programs topped headlines coming from the National Governors Association meeting in Virginia.

Kentucky Debating a Tax Overhaul — Again

For at least a decade, Kentucky has been studying how to adjust its tax system. Governor Steve Beshear hopes the state is finally ready to act.

Iowa Governor Blasts Pentagon Air Guard Cuts

Just days before he and other governors are scheduled to meet with Pentagon brass, Iowa Governor Terry Branstad attacked the Defense Department Thursday (July 12) for failing to work with governors on plans to drastically cut the size of the Air National Guard.

Infographic: S&P State Credit Ratings, 2001–2012

Private, independent credit rating agencies evaluate states’ financial health. States with the lowest grades typically have trouble keeping their spending in line with their tax revenues.

Pennsylvania Struggles to Help Its Weakest Cities

Pennsylvania has an ambitious program aimed at fixing the finances of troubled cities. In most cases, it doesn’t accomplish a lot.

Georgia Ponders Spending Billions on Roads and Rails

Voters will decide July 31 whether to pay more sales taxes to pay for dozens of road and rail improvements aimed at reducing congestion.