Reuters, April 30, 2013

(Reuters) - State and local governments can expect ever-widening budget gaps through 2060, as rising healthcare costs for both citizens and public employees surpass recent improvements in their revenue, the Government Accountability Office said on Monday. Closing the gap may require drastic action. If state and local governments were to end the shortfalls over the next 50 years solely through spending cuts, they would have to reduce their expenditures 14.2 percent each year, GAO found. If they relied only on tax increases, they would need to raise revenue by a "similar magnitude."
Facebook icon
LinkedIn icon
Twitter icon