Federal Fiscal Reform's Impact at Lower Levels of Government

The Obama Administration is hoping to address the nation's huge deficits. Neal Peirce looks at how proposed solutions might trickle down to states and municipalities.

1 minute read

December 18, 2010, 7:00 AM PST

By Nate Berg


Some of the proposed solutions could be a boon to states, counties and cities, but other ideas could have negative implications.

"[T]he bipartisan deficit commission that Obama created, headed by former Clinton White House aide Erskine Bowles and former Sen. Alan Simpson (R-Wyo.), includes one recommendation that states and cities will abhor. It would make bonds issued by state and local governments, today tax-exempt, fully taxable.

That shift would increase the necessary yields on state or local bonds so sharply that roughly 30 percent would be added to the cost of practically every capital investment states or cities make, notes Frank Shafroth, a veteran of positions in the local state and local government field and currently adjunct professor at George Mason and George Washington Universities."

Sunday, December 12, 2010 in Citiwire

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight