On balance, the President’s Jobs and Growth package can be expected to improve state and local government finances. The program promotes growth and creates jobs, boosting state and local government revenues.
These effects more than offset any parts of the package that might reduce state and local receipts. The analysis of the aggregate effects was described in the Office of Economic Policy report ”’Effect of the President’s Growth Package on State & Local Finances”’ released April 16, 2003.
In addition to the estimates presented there, we developed receipt estimates for each state and for the sum of all local governments by state. We did this by distributing the predicted change in aggregate state and local receipts from the Council of Economic Advisers (CEA) evaluation of the jobs and growth package released on February 4th.
The state-by-state estimates are shown in below. These estimates are