Let’s Be Honest, State Revenue Models Are In Ruins

Posted By on April 19, 2011

States see biggest revenue drop in 60 years…In a sign of the sluggish economy’s devastating impact, state government revenue across the country dropped by nearly one third in 2009 – the sharpest decline in 60 years, the Census Bureau said in a new report.  Expectations are for 2010 show improvement, but 2011 isn’t going to be good and 2012 is expected to be the worst in history due to the federal government slashing state stimulus programs.


By JENNIFER EPSTEIN

In a sign of the sluggish economy’s devastating impact, state government revenue across the country dropped by nearly one third in 2009 – the sharpest decline in 60 years, the Census Bureau said in a new report.

States saw record-breaking losses to their pension funds and in their tax revenues, as the recession wreaked havoc on payrolls and investments,.

Revenues plummeted by 30.8 percent, from $1.6 trillion in 2008 to $1.1 trillion in 2009, according to the report.

It was the most dramatic drop the Census Bureau has seen since it began collecting state revenue data in 1951.

States reported a total $477 billion drop in “insurance trust revenue” – mostly money from pension funds, while tax collections fell by $66 billion.

And the worst may still be to come.

Fiscal 2012 “will actually be the most difficult budget year for states ever,” said Nicholas Johnson, director of the state fiscal project at the Center on Budget and Policy Priorities, in an interview with The Washington Post.

The center reported last month that states will see budget shortfalls totaling more than $140 billion next year as they continue to wrestle with depressed revenue levels while federal stimulus dollars and reserves run out.

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One Response to “Let’s Be Honest, State Revenue Models Are In Ruins”

  1. Sausalito Ferry Schedule

    Keep this going please, great job!|

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