Trends from the 2010 Job Reports Underscore Need for Aid to States and Localities

Source: U.S. Congress Joint Economic Committee, Fact Sheet, August 10, 2010

From the press release:
The Great Recession caused the steepest decline in state and local tax receipts on record as nearly every revenue source took a hit. Rising unemployment and plummeting business profits drove down state income tax receipts. Sales tax receipts declined as consumer spending slowed and property taxes dropped as the housing market collapsed and housing valuations fell. Fewer home sales translated into lost revenues from property transactions. Even after making deep spending cuts over the last two years, state and local governments continue to face severe budget gaps. These spending cuts have led to unprecedented reductions in state government spending for two consecutive fiscal years.

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