Budget Cuts May Lie Ahead

The Rockefeller Institute of Government released it’s latest quarterly report on state tax revenues. The data shows continued weakening nationwide, with an increase of only 1.7 percent compared to the same quarter a year earlier — the slowest growth rate since 2003.

Total growth in state tax revenue was barely one-third the historical average over the previous nine years of 4.9 percent, according to the report released today. Fifteen states saw revenue declines during the quarter, compared to the same quarter a year earlier.

“To date, the tax revenue weakness has been mild when compared with past recessions,” said Rockefeller Institute Senior Fellow and study co-author Don Boyd. “However, the seeds of greater fiscal stress are already sown — economic weakness is spreading rapidly and tax revenue from the continuing base should be very weak in the April-June quarter, although perhaps partially masked by payments with 2007 tax returns.

You can read the report here.

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