U.S. states suffer "unbelievable" revenue shortages

[steven johnson]

Many U.S. states have finished the fiscal first quarter in red:


--Indiana where revenue collections were 8 percent below forecast, or $254 million lower than expected possibly a fall of $1 billion by the end of the fiscal year
--Iowa cut its fiscal 2010 revenue estimate by 8.4 percent this week
--Mississippi state September tax collections were 10 percent less than forecast
--California, general fund revenues for the first three months of the fiscal year were $1.1 billion below estimates in its budget
--Oregon collected about $10 million below estimates for personal and corporate revenues
--Georgia reported its September revenue fell 16 percent, or $260 million

In the second quarter of calendar year 2009, total state revenues were down 18 percent compared with the period in 2008. At least 48 states have addressed or still face shortfalls in their budgets for fiscal year 2010. Just two months into the new fiscal year, new shortfalls of $28 billion have opened up in the adopted 2010 budgets of at least 15 states and the District of Columbia. Shortfalls for fiscal year 2010 — those already addressed and those still open — total $168 billion. At least 36 states already anticipate deficits for 2011. Initial estimates of these shortfalls total almost $74 billion. As the full extent of 2011 deficits become known, shortfalls are likely to equal of at least $180 billion. Combined budget gaps for the next two years — state fiscal years 2010 and 2011 — are estimated to total at least $350 billion.

FACTBOX: Many U.S. states finish fiscal first quarter in red

New Fiscal Year Brings No Relief From Unprecedented State Budget Problems

Fri Oct 9, 2009 5:59pm EDT
09 Oct 2009By Lisa Lambert

WASHINGTON (Reuters) - The U.S. economy may be creeping toward recovery after the worst slowdown since the Great Depression, but many states see no end in sight to their diving tax revenues.

Tax revenues used to pay teachers and fuel police cars continue to trail even the most pessimistic expectations, despite the cash from the economic stimulus plan pouring into state coffers.

"It's crazy. It's really just unbelievable," said Scott Pattison, executive director of the National Association of State Budget Officers, and called the states' revenue situations "close to unprecedented."

Most states had been pessimistic in forecasting their tax revenues for the 2010 fiscal year, Pattison said. So far, collections have fallen below even those low targets.

U.S. states suffer "unbelievable" revenue shortages

[PDJane]

1. The truth is

and it's the thing that no-one is mentioning, one needs jobs to have a recovery, especially in the long term. There is no such thing as a jobless recovery. Keeping the rich in the cash and everyone else struggling for a living doesn't work for long.

[ixion]

8. "There is no such thing as a jobless recovery."

Exactly. This needs to be repeated over and over until people get it.

[villager]

13. +1

n/t

[UndertheOcean]

2. If People have no Jobs , they can't pay Income Taxes ? Why are they surprised ?

It is a vicious cycle

[orpupilofnature57]

3. We really need a clear definition of recovery and what were we stimulating?

[Ruby the Liberal]

4. UC is not taxed at the state level

at least not here.

This should come at no surprise to anyone.

[Autumn]

5. What a farce

this so called recovery is.

[704wipes]

6. wonder if IN governor Mitch Daniels has a clue yet?

He goes out around the state touting the addition of 50-70 $9.00/hr jobs here and there as replacements for thousands of lost $14-$22/hr jobs and then cries around that the revenue projections are still low.

He knows, he is just being a fucker...

[Raineyb]

7. Define unbelievable.

When you allow companies to move their operations overseas, have people unemployed, others underemployed, others going bankrupt due to medical expenses, and foreclosures up, can the shortfalls really be called unbelievable?

[sendero]

9. And sales tax collections are down even..

... more than that, yet we are told that retails sales are holding steady or up a little.

Like unemployment in the private sector, these shortfalls will create unemployment in the public sector in a nasty cascade of failure.

But don't worry, the "economists" that never even saw this debacle coming assure us that this will be a 12-18 month recession, nothing special. Right.

[dwilso40641]

10. For there to be a recovery the bush tax cuts have to go.

That would help to put money in the bank and put people back to work as it would create jobs here.

[stray cat]

11. Of course - thats why alot of stimulus money went to states - not to prevent debt but a melt down

[Mari333]

12. hey, we have plenty of money to pay the TALIBAN AND MERCENARIES

628 billion dollars just allocated to 2 occupations! but fuck everyone else of course.

[OHdem10]

14. And the Baucus Committee intends to send Medicaid back to states.

[AwakeAtLast]

15. Property taxes were capped at 1% in IN last year

and they are wondering why IN is losing revenue? They know why, but they will still cry about it.

Daniels finally got his tax cut, but now wants to howl about losing money. Typical Repuke.