Tags: States | Tax | Revenues | Rise

States Hope Tax Revenues Will Rise After Two Years

Monday, 02 Aug 2010 08:24 AM

State governments reportedly expect tax revenues to grow for the first time in two years as tax increases and a recovering economy increase collection rates.

This is good news for the 41 states that had budget shortfalls going into their 2011 fiscal years, almost all of which managed to close those gaps by cutting budgets and raising taxes.

However, while revenues are rising, they aren't rising fast enough to make up for the steep drops in sales and income taxes during the recession, The Wall Street Journal reports.

And, according to a new report from the National Conference of State Legislatures, which estimates that state budget gaps will total $83.9 billion for fiscal 2011, states still probably face two more years of financial difficulties.

The NCSL estimated that about half of the states will experience gaps in 2011 budgets unless Congress extends the special Medicaid payments that were part of the 2009 stimulus act that expire at the end of 2010.

"For the first time in a long time we're seeing some slight improvement in the state revenue situation," NCSL fiscal program director Corina Eckl told MarketWatch.

"But glimmers of improvement are tarnished by looming problems."

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State governments reportedly expect tax revenues to grow for the first time in two years as tax increases and a recovering economy increase collection rates. This is good news for the 41 states that had budget shortfalls going into their 2011 fiscal years, almost all of...
States,Tax,Revenues,Rise
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2010-24-02
Monday, 02 Aug 2010 08:24 AM
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