AUGUSTA – A new task force led by former New York Lieutenant Gov. Richard Ravitch and former Federal Reserve Chairman Paul Volcker warns of calamity for states if they continue on their financial trajectory and highlights six threats to their stability. Today, Governor Paul LePage noted the report is a “call to action” for Maine, as well as other states.
The study, released Tuesday titled “Report of the State Budget Crisis Task Force,” outlines six major fiscal threats: Medicaid spending growth; federal deficit reduction; underfunded retirement promises; narrow, eroding tax bases and volatile tax revenues; local government fiscal stress; and state budget laws and practices which hinder fiscal stability and mask imbalance. Click link below to read more….