This is the time of year when a variety of advocacy groups plan their legislative strategy for the next session. In the last two weeks, I have been part of discussions around smart growth, early childhood, economic development and community development issues.
The critical defining factor this year is current economic conditions and their impact on state revenues and expenditures. There are both cyclical and structural issues here that drive state revenues. We are facing at least two years of lower state spending – particularly if there is no appetite for revenue enhancements. CERC will be looking in more depth at this issue at our research and policy conference in November.
Recognizing these fiscal issues, it seems that many advocates are looking at “low growth, no growth” options for maintaining state priorities in key policy areas. From a competitiveness standpoint, this may be a time to concentrate on regulatory changes that will make it easier to invest and develop here, rather than to look to the state for capital investments.
I wonder and would be interested in hearing if others are seeing the same approaches to the next two years or whether my emphasis on fiscal constraints is overstated.
Bob Santy
President and CEO
Posted by cercinc 