Prioritizing School Finance Equity during an Economic Downturn: Recommendations for State Policy Makers

State budgets temporarily crashed amid the COVID-19 pandemic and economic shutdown, placing education funding at risk. To demonstrate implications for school finance, we show that (1) school districts are racially segregated along class lines; (2) higher-poverty districts receive a greater share of funds from state, as opposed to local sources, making them especially vulnerable during economic downturns; and (3) many states made across-the-board K-12 budget reductions following the Great Recession, but those cuts disproportionately impacted high-poverty districts. A decade later, state legislators may face similar fiscal challenges. Instead of enacting acrossthe-board cuts, states can identify specific funding programs that already benefit lower-poverty districts or wealthier students. We demonstrate how this approach would work under different state finance models and offer recommendations for state policy makers.

Defence Expenditures of Nato Member States in the Times of Covid and the New Us Administration: Selected Observations

NATO member states have been steadily increasing their levels of defence expenditures since 2015. In 2020, already ten member states met the NATO financial guidelines of spending at least 2% of their gross domestic product (GDP) for defence, including 20% for major equipment. In addition, many other countries were planning to achieve this target by 2024. There are two factors, however, which could slow down this process. First, economic recession as a follow up to COVID-19 will have a negative influence on the state budgets. Defence spending could start decreasing in nominal terms, followed by the challenges in meeting NATO financial guidelines. Second, while President Donald Trump put the Alliance's burden-sharing in the centre of his policy vis-à-vis European allies, the current US administration, represented by the Democratic Party, will put more emphasis on multilateral cooperation as well as soft security instruments, including development and diplomacy. In consequence, even if the White House is going to stand strongly with 2/20% rule, it might lessen the pressure on European allies, especially Germany, to significantly accelerate defence spending, seeing transatlantic relationship in a broader division of risks and responsibilities. In this article, it is suggested that due to the economic crisis of the 2020s and the shift in the policy of the US Government, NATO member states would slow down, in short and mid-term perspectives, the process of increasing defence expenditures.

Who owns the German subsurface? Ownership and sustainable governance of the subsurface in Germany

In 1980, the Federal Mining Act was introduced to govern the use of the German subsurface. By paying royalties, companies can get permission to exploit resources. Yet, there is no official report breaking down the payments for hydrocarbons and lignite, in particular regarding the effectively levied fees. Hence, the objective of this study is to provide an overview of the ownership and paid royalties, and to discuss the sustainable use and management of the German subsurface in the face of ecological, social, and economic impacts of resource exploitation. Our analysis shows that the subsurface is partly state- and partly company-owned. Lignite is almost exclusively privately owned by two companies. In contrast, hydrocarbons are predominantly state-owned. In 2017, on average 13% was paid in royalties for gas and 11% for petroleum. These royalties have minor impact on state budgets. For instance, in the concerned state of Lower Saxony, the levies amount to 189 million € or 0.6% of the state budget. Thus, the state income from royalties is low. However, local communities and property owners have no financial benefits. Finally, to obtain a more sustainable use of subsurface, the current Federal Mining Act must be adapted to account for environmental and social impacts.

CAPITAL RESERVE MANAGEMENT OF PUBLIC COMPANIES: ACCOUNTING TOOLS AS INFORMATION FUNCTION OF TARGET MECHANISM

The purpose of the article is to present the financial and economic content and purpose of capital reserves, insurance funds to ensure future costs and payments as the main components of the reserve system of public companies. The methods of theoretical and comparative analysis allowed to expand the view of the objects of reservation in the global space by comparing the norms of international standardization of financial reporting and the mandatory requirements of individual states in the field of reservation. The research methodology covers the analysis of reserved sources for Ukrainian and global companies in the context of the large-scale socio-economic crisis caused by the global COVID-19 pandemic. Based on a comparative assessment of the potential of reserve sources of surveyed companies, reservation in today’s crisis economy and in the foreseeable future is one of the most necessary and important means of ensuring the stable operation of socially significant companies. The study of regulatory norms of different states and principles and norms of standardization of public financial reporting led to the conclusion that for internal management purposes and market counterparties and public administration in the face of increasing unpredictability and depth of risk requires a more detailed and reliable information base on existing modern companies reserved funds to overcome the risks of loss (reduction) of capital. The practical consequences of weak imperatives on the obligation to create reservation facilities have been reflected in the allocation of subsidies from the state budgets of different countries to commercial structures in many areas of the economy. The existing issues actualize multi-vector developments in the system of interdisciplinary research, which substantiates the scientific legitimacy and relevance of our study. The results of analytical and logical approaches in assessing the state of backup support for Ukrainian and well-known international companies became the basis for obtaining evidence and arguments in formulating the parameters of adequate information for the current needs of targeted management of backup processes. The methods of verification of reserve system components proposed in this study can be used to establish general trends in the development of information parameters (accounting and public reporting system) in the field of reserve management and future losses (reduction) of capital of modern public companies.

Fiscal Pressure as a Trigger of Financial Performance for the Energy Industry: An Empirical Investigation across a 16-Year Period

Taxation exerts pressure on the economic activities of all companies, including economic entities that operate in the energy industry. This study examined the degree to which fiscal pressure influenced the financial performance of 88 publicly listed companies from the energy industry during a time frame of 16 years (2005Q1–2020Q3). By modelling financial data from the oil, gas and electricity sectors with panel data techniques, our results showed that fiscal pressure had a significant effect on the evolution of company financial performance measured by return on assets, return on equity and return on investment. The study revealed that fiscal pressure had a more positive impact on the financial performance of energy companies than a negative impact. This conclusion is important for overall taxation in the energy industry since corporate taxes, excise duties and mandatory labor contributions are basic resources for state budgets. Our empirical results imply important research directions on the prospect of analyzing company performance.

The instruments of Eurozone fiscal surveillance through the lens of the soft law/hard law dichotomy—Looking for a new approach

The past decade has profoundly reshaped the fiscal governance system of the Eurozone. Supranational prerogatives vis-à-vis State budgets have been significantly expanded, thereby redefining the nature of Union action in the field of fiscal policy and transforming the dynamics between the Union and its Member States. In spite of its overhaul and the practical effects that Eurozone fiscal governance now produces on the ground, the paper shows that overall, this regulatory system still formally qualifies as soft law. This results in a deep disconnect between the form and substance of Eurozone fiscal surveillance in the Eurozone, which raises a number of constitutional challenges. The paper shows that the source of this disconnect is to be found in the strict apprehension of the hard law/soft law divide and the narrow understanding of bindingness attached to it, which currently prevails in the legal discipline, but no longer corresponds to the realities of the EU’s regulatory practice. From there on, the paper offers an alternative approach towards the distinction between hard and soft law, based on a renewed, more open and contextual, understanding of the concepts of bindingness and legal effects, which might reconcile the form and the reality of Eurozone fiscal governance nowadays.

OPPORTUNITIES FOR THE DEVELOPMENT OF BEER TOURISM IN UKRAINE

The article describes the current state of development of beer tourism in Ukraine. In particular, the theoretical aspects of the development of beer tourism are studied: the ambiguity of approaches to the interpretation of the concept of beer tourism is pointed out; the subspecies of beer tourism are singled out and the main components of the beer tour are indicated in terms of their difference from other types of tours. The main variants of classifications of types of beer as the main product of beer tourism on the following signs are described: according to GOST 29018−91; GOST 3473-78, depending on the mass fraction of dry matter in the initial wort and the method of fermentation (the so-called international classification of beer). According to opinion polls, the key parameters of a typical portrait of the average beer consumer, and, consequently, a potential customer of a beer tour are given − gender, age, place of residence, consumer wealth, volume and location of consumption, preferences on type, price and packaging of beer. The economic indicators of the beer industry in Ukraine in the last decade are characterized: the causes and consequences of the beer crisis in Ukraine in 2013-2014, the activities and portfolios of beer brands of key players in the beer market of Ukraine − corporations SUN InBev Ukraine, Carlsberg Ukraine (Carlsberg Ukraine), Oasis CIS («First Private Brewery») and Obolon. The possibilities of craft brewing in Ukraine are analyzed, a brief description of the key craft breweries of Ukraine (VARVAR, PRAVDA Beer Theater, Collider, Tsypa Brewery, Bierwille, White Rabbit, Andrii’s Craft Brewery, K&F Brewery) is given. The information on top locations of beer tourism by regions and the main beer festivals and events of the country is systematized. Problems and perspective directions of development of domestic beer tourism are defined. It was found that the scale of beer tours in Ukraine is not well studied, however, with proper organizational work, beer tourism and, accordingly, beer tours in the country can significantly replenish the amount of tax revenues to local and state budgets, which will lead to effective policy and business revival. activity that will affect the national economy.

State budgets recover from pandemic with federal help

Significance The revenue from these tax returns will offer an indication of how badly the pandemic has hit state and city finances. State and municipal governments account for some 36% of all US government expenditure but, in most cases, they are not allowed to run deficits and so cut spending during a downturn. Impacts Cities, unlike states, are permitted to file for bankruptcy, as Detroit did in 2013 following the 2007-09 financial crisis. There may be concerns in the bond markets about municipalities that struggle to recover from the pandemic. More than half of all state tax revenue will continue to be used to fund spending on education and healthcare.