To prepare for the next recession, states take stress tests

Beacon Financial Strategies
Beacon Financial Strategies

No government can be fully prepared for every economic twist and turn. Still, some are trying.

By Liz Farmer | Governing

The Great Recession was uniquely devastating for states and localities because it hit all three major tax revenue sources: income, sales and property. It was a scenario that few, if any governments, were really prepared to absorb. As a result, governments were forced to make massive budget cuts.

Now, as the recovery trudges on longer than most, a growing number of states are making sure they aren’t blindsided by the next downturn.

Enter stress testing. The idea, which was borrowed from the U.S. Federal Reserve, essentially throws different economic scenarios at a state budget to see how revenues would be impacted.

Continued:

Related: Economic Forecast Data for Arizona

Share this!

Additional Articles

Rose Law Group pc values “outrageous client service.” We pride ourselves on hyper-responsiveness to our clients’ needs and an extraordinary record of success in achieving our clients’ goals. We know we get results and our list of outstanding clients speaks to the quality of our work.

News Categories
December 2016
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031