State Fiscal Trends and Challenges: Uncertainty Ahead

In this episode of GeTin' SALTy, host Nikki Dobay discusses state tax revenue trends and challenges with Lucy Dadayan, principal research associate at the Urban-Brookings Tax Policy Center.  The conversation highlights the mixed fiscal performance of states in 2024, including modest overall growth, declining sales tax revenues, and fluctuating personal income tax collections influenced by stock market performance.  Looking forward to fiscal year 2025 and beyond, they examine issues such as inflation, federal policy uncertainty, tariffs, and the impact of state tax changes. Lucy emphasizes that states should approach upcoming fiscal challenges cautiously by avoiding additional tax cuts, diversifying revenue streams, and considering regional partnerships.   She also anticipates potential impacts from federal workforce reductions and the expiration of key provisions from the Tax Cuts and Jobs Act.  The episode wraps up on a lighthearted note as Nikki and Lucy discuss whether a hot dog counts as a sandwich! For a link to the research Lucy discussed in the podcast click here.