State Budget Update: July 2010 (Preliminary Report)

Source: National Conference of State Legislatures, July 2010
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From the summary:
The impact of the severe economic recession that began in 2007 continued to create substantial revenue shortfalls during 2010 legislative sessions. As a result, state legislatures were prompted to increase taxes and fees for the ninth consecutive year as they worked to shore up state budgets.

To date, 45 states have provided data about tax changes in 2010, largely affecting revenue collection in fiscal year (FY) 2011. States that have not yet reported are California, Georgia, Hawaii, Michigan and Pennsylvania. For purposes of this report, Massachusetts and New York are counted as reporting states, but it should be noted that the information for both states is partial, with several significant tax measures still pending.

This report is based on data collected from legislative fiscal officers in late June and July 2010. It includes information on:

* Revenue performance for major state tax categories through May.
* Estimated FY 2010 year-end balances.
* FY 2010 revenue and spending changes.
* Projected FY 2011 budget gaps confronting states during budget deliberations.
* New FY 2011 potential gaps that emerged after the budget was enacted (largely due to assumptions about the six-month extension of enhanced Federal Medical Assistance Percentages–FMAP).
* Projected FY 2011 tax collections compared to FY 2010 estimated collections.
* Projected FY 2011 year-end balances.
* FY 2011 revenue and appropriations changes.
* Projected budget gaps in FY 2012 and FY 2013.
* A summary of the state fiscal situation.

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