Planning Ahead by Looking Back: The Federal-State Relationship in Times of Recession

On Friday, Sept. 13, The Pew Charitable Trusts hosted an event on the importance of federal-state coordination during a recession. As Commissioner of Minnesota Management and Budget from 2006-2010, attorney Tom Hanson joined other policymakers on a panel to reflect on how coordination across levels of government worked during recent downturns, titled “Insights From the Front Lines of the Federal-State Response.”

As the economy continues the longest period of expansion in its history, economists are weighing the likelihood of a downturn. The past two recessions, in 2001 and 2007, significantly affected state revenue, prompting the federal government to provide emergency stimulus funding to help states shore up their budgets. Deploying those resources and ensuring that they served their intended purpose required unprecedented coordination among federal and state agencies, especially during the 2007 recession. Understanding what worked in that collaborative effort can help both levels of government prepare for the next economic contraction.