New large-scale research on tax incentives offers the first national analysis on how incentives influence state finances and fiscal health. Looking at all incentives offered by 32 states from 1990 to 2015, researchers found that most programs -- which most-often tried to promote job creation through R&D or business investment credits and property tax abatement -- were linked with worse overall fiscal health. The study, described in Governing, finds that states and cities need to have more clarity and realistic expectations for what they might get back from their investment before incentives are established.
At our Ideas Summit earlier this month, NewDEAL Leaders heard insights on automation and its impact on the future workforce from Alastair Fitzpayne, director of the Aspen Institute Future of Work Initiative. Read an op-ed in The Hill for more insight from Fitzpayne and the director of the Autodesk Foundation on what automation means for workers and how employers and governments can help them prepare, or check out a recorded livestream of the session on automation at the Ideas Summit.
NewDEAL Leader Rhode Island Treasurer Seth Magaziner announced that his BankLOCAL initiative is expanding after two successful years of operation. BankLOCAL, which was one of six winners of the NewDEAL 2017 New Ideas Challenge policy competition, incentivizes banks and credit unions to make loans to local small businesses by moving state money into community banks, opening up capital for reinvestment. Learn more about BankLOCAL, which has supported loans for more than 235 small businesses so far. Click here to tweet about Treasurer Magaziner's work on BankLOCAL.