NCPA - National Center for Policy Analysis

Guiding State Lawmakers in Budget Reform

January 27, 2011

Most legislative "fixes" aimed at mending state structural deficits created by overspending have merely postponed or obscured the problems, rather than address them directly, says the Reason Foundation. 

In response, the American Legislative Exchange Council, Reason Foundation, Americans for Tax Reform, The Mercatus Center at George Mason University, Washington Policy Center, Evergreen Freedom Foundation and State Budget Solutions have created the State Budget Reform Toolkit.  The Toolkit seeks to guide policymakers in prioritizing and more efficiently delivering core government services through advancing Jeffersonian principles of free markets, limited government, federalism and individual liberty.

Topics covered in the State Budget Reform Toolkit include:

  • Priority-based budgeting/budgeting for outcomes.
  • State pension reform.
  • Privatization and competitive contracting.
  • State tax and spending limitations.
  • Balanced budget requirements.
  • State hiring freezes.
  • Restructuring state retiree health care plans.
  • Employee incentive/gainsharing programs.

Source: Leonard Gilroy and Jonathan Williams, "State Budget Reform Toolkit," Reason Foundation, January 25, 2011.

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