Latest news with #stateleaders
Yahoo
4 days ago
- Business
- Yahoo
Editorial: Texas is talking tax cuts. Illinois? More hikes
The phrase 'there are two Americas' has many meanings. It can mean that there are two justice systems: one for the rich and one for the poor. It can mean right and left. Rural and urban. Ketchup and … the right way to eat a hot dog. When it comes to taxes and spending, state leaders often split into two camps, too — one that talks about priorities and restraint, and one that talks about hiking and expanding. Call them Texas and Illinois. Exhibit A: Texas Gov. Greg Abbott recently announced on the social platform X that state lawmakers this week will be tackling property taxes in a special session. First on the agenda: legislation to cut property taxes. Second on the agenda: legislation to limit spending by government entities that impose property taxes. You don't have to like everything they do in Texas, and we sure don't, but you can't summarily dismiss this kind of thinking, which rarely even enters the discussion in Illinois. While Texas is getting ready to talk about ways to cut taxes and limit spending, our most recent legislative session ended with a handful of new tax hikes and a 'to be continued' on transit that promises to include conversations about other potential tax increases. Importantly, Abbott's message isn't just about people-pleasing tax cuts — it's a call to make relief happen without breaking the bank. Tax cuts and spending cuts have to go hand in hand, otherwise the cycle starts all over again as deficit spending goes up and tax hikes come calling down the road to plug the hole. And to that end, we know it's not all sunshine and roses in Texas. They have fiscal problems, too, namely that local property taxes have grown dramatically in many parts of the state. In Austin, for example, the city's property tax levy increased from $675 million to over $1 billion from 2018 to 2022, representing a 51.4% increase, according to research from the Texas Public Policy Foundation. In 2023, Gov. Greg Abbott and over 80% of Texas voters approved an $18 billion plan aimed at easing the burden on homeowners and businesses. But local governments' overspending has continued to drive up bills, blunting the relief. That's why Abbott is now pushing to rein in local spending as part of the broader fix Texas needs. Still, acknowledging those problems and working to address them is precisely what stands out to us. We like it when leaders are honest about financial problems and willing to tackle them head-on, even when it isn't easy. This isn't a pro-Texas, anti-Illinois commentary. This is an endorsement of good ideas, common sense and getting to work addressing big fiscal problems. We're not saying move to Texas — though Austin and Dallas have their appeal. We like it just fine plunked here in the Midwest next to plenty of fresh water and a climate less prone to life-altering natural disasters. And in the case of the recent loss of young life due to flooding, we're well aware that adequate local government spending on emergency procedures remains vital. We hope Abbott is aware of that, too. But we're seeing Texas leaders bring a refreshingly different mindset to the debate over government and taxpayer dollars. Where Illinois politicians are more likely to stick their heads in the sand, Texas at least appears willing to confront money issues, or at least speak their name out loud. Here in Illinois, the best we've managed to do is form working groups to study our state's property tax problem — which is among the worst in the country — and then move on without real action. That pattern reflects a broader political culture of denial, as if ordinary families aren't struggling to cover mortgages and grocery bills. Not only is tax relief not on the table, but tax hikes are a constant threat here. Illinois is far from alone in this pattern, of course. But as Texas works to tackle taxes and government spending problems, Illinois should at least start talking about them more honestly. _____ Solve the daily Crossword
ABC News
12-06-2025
- Health
- ABC News
Push for greater regulation of Australia's fertility industry
Victoria's health minister will advocate for greater regulation of the nation's fertility industry at a meeting with the federal health minister and state and territory leaders in Melbourne today.
Yahoo
16-05-2025
- Business
- Yahoo
Fitch reaffirms state's AAA bond rating, a day after Moody's soured on the state
The Louis L. Goldstein Treasury Building in Annapolis. (File photo by Danielle E. Gaines/Maryland Matters.) Fitch Ratings reaffirmed Maryland's AAA bond rating Thursday afternoon, just one day after Moody's rocked state leaders by downgrading its rating of the state's creditworthiness after more than 50 years. In reaffirming its highest rating, Fitch noted elevated liabilities for the state that 'are carefully managed and moderate relative to the economic resource base. The state's economy benefits from its proximity to the nation's capital, with a large federal presence and associated private contracting.' The rating firm also noted the state's 'unlimited legal authority to raise' taxes. 'Revenue growth prospects are expected to remain strong and comparable with overall U.S. economic growth over the long term. Risk from reliance on personal income tax is mitigated by a robust federal institutional presence,' Fitch analysts wrote in the analysis. But Fitch noted concerns about the state's 'rising spending demands with recurring revenues,' particularly state spending on public school education. The firm said the state's 'inability to effectively manage rising spending demands with recurring revenues'could 'weaken Fitch's assessments of either the state's expenditure framework or operating performance.' Retiree benefits may also lead to a downgrade should there be 'a material increase,' Fitch said. Fitch has given Maryland its highest credit ranking since 1993. Maryland loses coveted Aaa bond rating The Fitch rating runs counter to one released Wednesday by Moody's, considered a gold standard rating agency. Moody's downgraded its Aaa rating for Maryland to Aa1, the first downgrade since 1973. The change meant the state lost its treasured triple AAA creditworthiness rating — Standard & Poor's, the third major bond-rating firm, has given Maryland an AAA rating since 1961. But Moody's had been telegraphing its position for months. It took a dim view of the state's over-reliance on federal agencies and employment, and its lack of a diverse economy that was less susceptible to President Donald Trump's slashing of federal budgets, agencies and workforce. Last year, Moody's affirmed its triple-A rating for the state, but downgraded its outlook from stable to negative, citing concerns about spending, including public school funding. In March, the company issued another report naming Maryland the state most at risk as a result of federal budget and job cuts. Moody's had given Maryland an Aaa rating every year since 1973 — until Wednesday. Its downgrade of Maryland 'was driven by economic and financial underperformance compared to Aaa-rated states, which is expected to continue given the state's heightened vulnerability to shifting federal policies and employment, and its elevated fixed costs,' Moody's said in its report. State officials reacted angrily to the downgrade and blamed the uncertainty caused by Trump despite billions in deficits over the next five years that were projected in December and January, before Trump was sworn in. Prior to Wednesday's announcement, Maryland was one of 14 states to have the highest rating from the three major agencies — Fitch, Moody's and Standard & Poor's. Credit ratings, which are updated annually, determine how much interest the state — and its taxpayers — pay on billions of dollars borrowed for roads, bridges, schools and other infrastructure. With Fitch reaffirming its confidence in the state, it is unclear if the Moody's downgrade will affect the interest rates available to Maryland. State officials now await the Standard & Poor's report, which is expected in the coming days, ahead of a planned June 11 bond sale. State officials have expressed little concern about retaining that firm's highest ranking. SUPPORT: YOU MAKE OUR WORK POSSIBLE
