1. 2014 NASACT ANNUAL CONFERENCE Stan Czerwinski State Fiscal Pressures 1

2. NGA and its Role  Bipartisan Organization of the Nation’s Governors  Speak with Collective Voice on National Policy  Improve State Government  Share Best Practices  Develop Innovative Approaches  Support Principles of Federalism 2

3. State and Local Governments Face Increasing Fiscal Challenges 3

4. 4 Health and Nonhealth Expenditures of State and Local Governments

5. Own-Source Revenue for State and Local Governments 5 Source: GAO simulations. Income Tax Sales Tax Property Tax

6. State Health Care Spending By Category 6 Source: Bureau of Economic Analysis’s National Income and Product Accounts.

7. State Pension Plan Funding Sources 7 Employee contributions Investment returns Source: National Association of State Retirement Administrators, 2011 (based on Census data).

8. Actions by State Governments Toward Pension Plan Sustainability 8

9. General Sales Tax as a Share of Total State Tax Revenue 9 CA OR WA MO ID WY NV UT CO AZ NM HI AK TX OK KS NE IA MO AR LA MS AL GA TN KY IL IN OH WVA VA NC SC FL MI WI MN MD PA NY ME NH VT MA Conn RI NJ DE DC ND SD High Moderate Low No general state sales tax levied Source: Tax Facts, The Tax Policy Center, The Brookings Institution and the Urban Institute, based on data from U.S Census Bureau, 2011 State Government Tax Collections, April 2012.

10. Individual Income Tax, as a Share of Total State Tax Revenue 10 CA OR WA MO ID WY NV UT CO AZ NM HI AK TX OK KS NE IA MO AR LA MS AL GA TN KY IL IN OH WVA VA NC SC FL MI WI MN MD PA NY ME NH VT MA Conn RI NJ DE DC ND SD High Low No individual state income tax levied Moderate Source: Tax Facts, The Tax Policy Center, The Brookings Institution and the Urban Institute, based on data from U.S Census Bureau, 2011 State Government Tax Collections, April 2012.

11. Aggregate Shifts in State and Local Intergovernmental Grants 11 Source: Bureau of Economic Analysis’s National Income and Product Accounts. Federal Grant Revenues, 1980 Federal Grant Revenues, 2010

12. State Revenues: Federal Grants Had Been Increasing 12 Source: U.S. Census Bureau Government Finance Statistics.

13. State Expenditures: Education and Public Welfare (Medicaid)Have Been Key Drivers 13 Source: U.S. Census Bureau Government Finance Statistics

14. 14 State Education Spending By Category Source: Tax Facts, The Tax Policy Center, The Brookings Institution and the Urban Institute, based on data from U.S Census Bureau, 2011 State Government Tax Collections, April 2012.