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State fiscal sustainability: A new theoretical approach and case study of the State of Arizona.

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Overview

This dissertation fulfills three objectives: (a) It proposes a new approach to examining state fiscal sustainability discrete from national fiscal sustainability definitions and indicators; (b) It applies that new theory to a case study of the State of Arizona; and (c) It discusses the implications of the findings for the State of Arizona, state fiscal sustainability generally, and offers suggestions for the application of this research in the future.;Past and present fiscal crises at the state level of government demand additional study in order to ensure that state governments are on a fiscally sustainable path. State governments, particularly in the United States, represent an important portion of overall economic activity. In times of fiscal crisis, state actions to fill the gap between state revenues and expenditures often serve to counter federal actions to bolster the economy because (in part) of states' balanced budget requirements and their inability to withstand multiple years of below trend revenues without cutting services or increasing revenues.;Drawing upon the existing literature in the areas of fiscal sustainability and its analysis as well as revenue and expenditure policy this study concludes that the differences between national and state fiscal rules and pressures necessitate a state specific definition and model for fiscal sustainability. With the main focus of national fiscal sustainability on government debt and the ability to continue to service that debt into the future, this definition does not account for the unique setting in which state government finance operates. This study proposes a new definition and indicator for state fiscal sustainability incorporating future projections of state General Fund revenues, expenditures, and reserve fund balances in the aggregate.;This study applies the state specific fiscal sustainability indicator to a case study of the State of Arizona demonstrating that the state is not on a fiscally sustainable path. The case study further illustrates that the proposed theory offers promise as a state fiscal sustainability indicator and may be applied in future research involving multiple states to examine correlations between state qualities and their fiscal path.
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Product Details

  • ISBN-13: 9781109194210
  • Publisher: ProQuest LLC
  • Sold by: Barnes & Noble
  • Format: eTextbook
  • Pages: 114
  • File size: 2 MB

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