Cohen Chairs Hearing on the Impact of Federal Legislation on State and Local Governments

Apr 15, 2010 Issues: Memphis, Tennessee, Budget, Economy

WASHINGTON, D.C. – Congressman Steve Cohen (D-TN-9), Chairman of the Subcommittee on Commercial and Administrative Law, held a hearing today to examine the impact of Congressional legislation on state and local government revenues during the current economy.

“Congress must do its part to help state and local governments weather the current economic climate,” said Congressman Cohen.  “Today’s hearing provided us with the insight we need to help balance protecting the authority of state and local governments to tax with providing taxpayers with certainty and fair tax policies.”

During these tough economic times, state revenues have declined while states have also had to increase spending.  The Center on Budget and Policy Priorities estimates that states will face combined budget shortfalls of $350 billion for fiscal years 2010 and 2011.  Although the tax revenue base declines via higher unemployment, lower property tax sales, and less sales tax revenue, demand for state and local government services will not decline.  In fact, demand for these services, such as for unemployment payments and other social programs, historically increases during economic downturns.

The subcommittee, which has jurisdiction over state taxation issues, heard testimony from the following experts regarding the role Congress can play in helping states during the current economic climate:

  • Vermont Governor Jim Douglas
  • Texas Tarrant County Judge B. Glen Whitley
  • Robert Ward, Deputy Director of the Rockefeller Institute for Government
  • Kerry Korpi, Director of Research and Collective Bargaining Services for the American Federation of State, County and Municipal Employees
  • Joseph Henchman, Tax Counsel and Director of State Projects for the Tax Foundation
  • Scott Pattison, Executive Director for the National Association of State Budget Officers

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