Four Big Threats to State Finances Could Undermine Future U.S. Prosperity

Source: Nicholas Johnson and Michael Leachman, Center on Budget and Policy Priorities, February 14, 2013

From the summary:
Without adequate revenues, states and localities cannot continue providing public services like education, health care, and infrastructure that lay the groundwork for a prosperous future. But state revenue systems face four serious challenges.
– The most severe recession in seven decades blasted holes in state budgets from which they have yet to recover.
– States’ antiquated tax systems are ill-suited to raising adequate revenue in a 21st century economy.
– The federal government, which provides about one-quarter of state and local revenues, is on track to make deep spending cuts that could hit states hard.
– Some state policymakers are pushing for large tax cuts that would further undermine state revenues, with potentially dramatic consequences for public services.