Tax Collections for States are Down

Throughout this latest recession, the decline in state revenue collections has been steep and unrelenting. Unfortunately, the sharp revenue drop in FY 2009 will not be the end for many states—more than half have already forecast further declines in tax revenue in FY 2010, according to a new NCSL report.  

NCSL has been tracking the effect this poor revenue performance is having on state budgets. At least 21 states have projected mid-year budget gaps, in addition to the $145 billion gap states cumulatively closed while crafting their FY 2010 budgets. 

The National Conference of State Legislatures’ Projected Revenue Growth for FY 2010  is now available online. Rather than focusing on the collection of taxes that states made in the previous fiscal quarter, this new report provides official forecasts from the states for FY 2010 revenue collections.   

NCSL has more information on tax changes and measures to balance FY 2010, state tax reliance and additional information on FY 2010 post-enactment budget gaps and cuts.

For more information on this and other state budget data, contact the NCSL press room.

NCSL is a bipartisan organization that serves the legislators and staffs of the states, commonwealths and territories. It provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues and is an effective and respected advocate for the interests of the states in the American federal system.