✂️ Local cuts often follow when states cut property taxes

                                           

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The Ledger State Fiscal Resources

Property Tax Reforms May Increase Fiscal Strains Local governments depend on property taxes for predictable revenue to fund essential services such as schools, libraries, hospitals, and parks. So when states enact property tax cuts—for example, to address current public frustration over the cost of living—the effects can be felt far and wide. This difficult trade-off shouldn't go unnoticed by officials as property tax reform movements gain steam throughout the states. WHERE AND WHY

Disasters Will Keep Coming—and Costing States When it comes to managing floods, wildfires, and other disasters, states are facing a new reality. Why? Not only are these events getting more frequent and severe, officials are now facing many emerging budget constraints—all while the level of federal disaster support remains uncertain. But it's not all gloom and doom. States can get ahead of the next disaster and the fiscal challenges that follow, including by taking these steps: ✔️ Track current spending: Keeping up-to-date reports on how disaster funds are being spent allows states to better plan for future expenses. ✔️ Budget proactively: Setting up disaster response accounts ensures that money is available when needed while minimizing the impact on broader state finances. ✔️ Mitigate future risks: Investing today in efforts to minimize damage tomorrow can protect human life while slowing the growth of recovery costs. STRATEGIES TO HELP

FACT OF THE MATTER 131 The number of disasters in the U.S. during the 2010s in which damages reached or exceeded $1 billion—nearly double the number of such disasters in the previous decade. Most States Are Underinvesting in Roads and Bridges States' lack of roadway funding has serious fiscal and safety implications—it's not to be ignored. But for leaders to effectively tackle the issue, they first need strong data on the health of their current infrastructure and what long-term investments are needed. That's where the Asset Sustainability Index comes in. The index measures whether planned investments will meet anticipated needs over the next 10 years. Use it today to see how your state is faring. DATA, MAPS, CHARTS

QUOTE OF NOTE "Without official guidance from the federal government, states are left to figure out the mechanics of how to proceed in a world without '$9.99' pricing—and in some cases, are also being left with the bill." - Pew's Page Forrest on what the lack of new pennies means for state budgets States are penny-pinching in more ways than one (LinkedIn)

RELATED RESOURCES Register: How Policies Can Address the Needs of Older Americans As Budgets Tighten, States Double Down on Efficiency and Tech Innovation

In the Media Federal Cuts Hit State Budgets Hard as Support for Medicaid, Food Stamps Shrinks CRONKITE NEWS What Emergency Managers Say They Need More Than Ever PROPUBLICA Data Center Tax Breaks Are on the Chopping Block in Some States STATELINE These Governors Want to Tap Emergency Savings, a Sign of Budget Stress PLURIBUS NEWS Was this forwarded to you? Don't miss our next email. SIGN UP 901 E Street NW, Washington, DC 20004-2008 Copyright © 2026 The Pew Charitable Trusts. All Rights Reserved.