On this episode of the Debtwire Municipals Muni Lowdown podcast, Managing Editor Paul Greaves speaks with public finance expert Liz Farmer about the shifting realities facing state and local budgets.

Liz begins by outlining what feels stable—and what feels newly uncertain—as governments enter another budget cycle. From there, she unpacks how rapid federal policy shifts and more assertive federal actions are reshaping the planning environment for states and municipalities.

Paul and Liz then explore the growing impact of geopolitical tensions on local finances, including supply‑chain pressures, energy‑related cost spikes, and the ripple effects these create for capital projects and service delivery.

They zoom out to examine the broader forces redefining public budgeting—from demographic changes to rising service costs, climate‑driven spending, and other structural trends that deserve far more attention.

Liz closes the episode with a forward‑looking take on what state and local leaders should be preparing for in the year ahead—and the under‑discussed risks and opportunities that could matter most for long‑term fiscal resilience.