State and Local Debt Burdens in the 1980s: A Study in Contrast

Abstract

State and local governments have coped with major changes in their fiscal environment during the 1980s. The impact of tax and expenditure limitations (Joyce and Mullins, 1991), declining federal aid (Nathan and Lago, 1988), and changes in federal tax policy (Courant and Rubinfeld, 1987) all changed the calculus facing state and local fiscal decision makers. While the effects on their tax and expenditure structures have been studied, the impact on state and local government debt policy and management has received scant attention.