WHEREAS, after 10 years of unprecedented budget surpluses, states are experiencing traumatic revenue shortfalls; and

WHEREAS, the Federation of Public Employees program and policy council authorized a task force to research the tax and revenue issues affecting the delivery of quality government service; and

WHEREAS, state budgets are dependent on federal funds to continue to provide quality services to taxpayers; and 

WHEREAS, 25 percent of the dollars spent on public services by the states originate from the federal government; and

WHEREAS, the Economic Policy Institute estimates that federal spending on programs for state and local government is not keeping pace with inflation and population growth; and

WHEREAS, the recent tax cuts will further undermine the federal government’s ability to maintain its commitments to the states; and

WHEREAS, the federal estate tax has been a vehicle to provide revenue directly to state general funds; research by Citizens for Tax Justice shows that the federal estate tax provided approximately 1.4 percent of state general fund revenue; and

WHEREAS, recent elimination of the federal estate tax is expected to cost the states $31 billion per year starting in 2011; and

WHEREAS, an additional $3 billion in annual revenue may be lost to the 12 states that have a state estate tax based on the federal estate tax; and

WHEREAS, inadequate federal funding contributes to the burgeoning state fiscal crisis; and

WHEREAS, states are considering layoffs and reductions in the quality of services provided to the public in response to the fiscal crisis: 

RESOLVED, that the AFT continue to advocate for adequate federal funding to protect the quality of state and local government programs; and 

RESOLVED, that the AFT advocate for the reinstitution of a fair and progressive estate tax.

(2002)