PwC
While the subject of federal debt and deficits has been well-analyzed and debated, fiscal integrity and competitive posture at the state level has been largely overlooked. A study of state position and posture, however, reveals a number of success stories and in some cases, causes for serious concern. Many states are facing increasing challenges regarding how to reduce waste, constrain spending, improve performance, and maintain reasonable and competitive levels of taxation. In addition, some governments are experiencing serious competitiveness and financial challenges that are driven by a number of factors including: changes in the nature of the economy; outdated and inefficient organizational models and operating practices; unfunded retirement obligations; expanded welfare systems; excessive regulation; deteriorating infrastructure; and outdated tax systems. This paper presents a State Financial Position Index (SFPI) to help understand the nature and scope of the related challenges and to analyze commensurate responses.
Courtesy of PwC
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