Source: National Conference of State Legislatures, March 2010
The National Conference of State Legislatures’ (NCSL) “State Budget Update: March 2010” provides information on all 50 states and Puerto Rico. The report is based on data collected from legislative fiscal directors in March 2010 and includes information on state revenue performance, the revenue outlook for FY 2011 and projections of future budget gaps. It also takes a special look at state actions to address the end of funding provided by the American Recovery and Reinvestment Act (ARRA).
Although spending overruns — especially for Medicaid — are increasingly pinching state budgets, the principal cause of budget gaps has been the steep drop-off in state revenues. The continued poor performance of personal income and sales taxes accounts for much of the problem in FY 2010. Through the first eight months of the fiscal year, 25 states reported that personal income tax collections were below the latest target. General sales taxes were below the most recent forecast in 23 states and Puerto Rico.