What a Possible Downturn Means for State, Local Budgets

The video discusses the financial outlook for states as they transition from fiscal year 22 to 23, highlighting strong revenue growth in 22 and slower growth expectations for 23. It covers the allocation of federal stimulus funds, primarily for infrastructure and salary increases. The impact of gas tax holidays on state revenue is examined, noting that while they are not significantly affecting credit, they reduce funds for infrastructure. Finally, the video addresses how states are managing inflationary pressures, particularly in labor costs, which are a major budget component.

In what ways are states managing inflationary pressures on their budgets?

What are the primary challenges faced by states regarding labor costs?