State Revenue Report # 72: State Taxes Slow Yet Again, and Further Weakening Appears Likely -- Mid-Year Budget Cuts May Lie Ahead

Publication Date: July 2008

Publisher: Nelson A. Rockefeller Institute of Government

Author(s): Donald Boyd; Lucy Dadayan; Nino Giguashvili

Research Area: Banking and finance; Government

Keywords: State Tax Revenue; State and Local Finance

Type: Report

Abstract:

State tax collections are at their weakest in five years, with one key revenue source -- sales taxes -- showing no growth in the first quarter of 2008. Continued slowing in the economy means further declines in tax revenues can be expected. The result: Governors and legislators who have just completed action on 2008-09 fiscal plans are likely to face the need to make budget cuts in the months ahead.