For the past two fiscal cycles, states have grappled with unprecedentedly large budget gaps. By the simple arithmetic of fiscal policy, these gaps can be closed with budget cuts or revenue increases. An important question for the policy maker is: Which of these two courses of action is likely to...

State and local government spending has grown at a remarkable pace in the years since World War II. Many states have attempted to arrest this growth by adopting tax or expenditure limitations (TELs). These are formal rules – either codified in statutes or in state constitutions – that limit...