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As Albany has shared less revenue, state mandates have driven local spending increases.
The districts have no choice, they say, because their usual sources of revenue — state money and local property taxes — have been hit hard by the recession.
The school districts are simultaneously losing money from both their main sources of revenue: state financing and revenue from local property taxes.
Faced with plummeting gasoline tax revenue, state transportation officials have announced plans to cut funding for road and transit projects by $754 million over the next five years, the greatest reduction in two decades.
To recapture the lost revenue, state and local governments would have to raise tax rates or otherwise change tax laws in order to continue collecting the same real revenues from their taxpayers.
Without a budget to either cut spending or generate more revenue, state government is on pace to spend around $5 billion more through June 30 , 2016 than it will bring in.
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In the scramble to find something, anything, to generate more revenue, states are considering new taxes on virtually everything: garbage pickup, dating services, bowling night, haircuts, even clowns.
One main incentive of legalization is the tax revenue states receive from marijuana sales.
A new study came out showing how much revenue states ($20.5 billion) and the federal government ($8 billion) are missing out on through refusing to legalize (and tax) marijuana.
New Jersey could be facing a budget shortfall as high as $2.4 billion for the current fiscal year because of a steep falloff in revenues, state officials said yesterday.
"Faced with declining tax revenues, state and local governments are cutting" education budgets nationwide, Ms. Weingarten said in a speech to education policy makers in Washington.
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