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Options for a Responsible Budget

The search for a solution to the state’s ongoing fiscal crisis must address spending restraints, Medicaid cost-containment, pension funding issues, and other challenges. A balanced approach to a responsible budget should also include alternatives to making deeper cuts in critical investments in education, health care, human services, and public safety. Policymakers should leverage existing state resources outside the General Funds, examine tax expenditures, and consider new sources of revenue. They should also reconsider some form of debt restructuring to reduce the huge backlog of unpaid bills. Multiple policy tools are needed for a responsible state budget.

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