State Leaders Weigh Allocation of American Rescue Plan Act Funds

In a memo to Colorado’s Office of State Planning and Budgeting, experts from The Pew Charitable Trusts outline three questions that states should consider when deciding how to allocate federal funding from the American Rescue Plan Act:

• How should they balance one-time and ongoing spending?
• Are there opportunities for states to improve their long-term fiscal positions?
• What strategies will ensure that initiatives to revitalize the economy are effective and accountable?

This memo sent April 29, 2021, summarizes Pew research on key fiscal and economic policy issues, including long-term budget forecasting, rainy day fund policy, and economic development programs.