February 01, 2003
PUBLIC FINANCE > Budget > FY Pre-2008

State Fiscal Crisis: Golden Opportunity for Reform

MTF calls on state policy makers to take advantage of the need for extraordinary solutions to the fiscal crisis and seize the best opportunity in years to undertake important reforms of state government. The bulletin highlights a number of issues that should be at the top of the agenda: revamping the education local aid formula, redesigning the system for purchasing human services, restructuring the management of the courts, revising sentencing guidelines, ending pension abuses, encouraging competition to provide state services, and eliminating unnecessary mandates and restrictions that add to state costs. Although not nearly enough to solve the state's budget shortfall, the opportunities for savings in the long term are significant. Such reforms would improve the quality and equity of services, make better use of taxpayers' dollars, and help restore public confidence in state government.