State funding crashes
State-funded services will be cut severely quite soon. Here’s why:
The Nelson A. Rockefeller Institute of Government has issued a State Revenue Flash Report discussing an across the board enormous drop in personal income tax revenues.
Total personal income tax collections in January-April 2009 were 26 percent, or about $28.8 billion below the level of a year ago in states for which we have data. In April 2009 alone (April being the month when many states receive the bulk of their balance due or final payments), personal income tax receipts fell by 36.5 percent, or $18.2 billion.
The largest decline was in Arizona, where collections declined by nearly 55 percent.
This is a very grim report on state finances. (Source.)
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