Report: States saw significant revenue decline in first quarter

A report from the Nelson A. Rockefeller Institute on Government says states experienced “widespread and sharp declines”  in tax revenue in the first quarter of 2009.

From the highlights:

  • Total state tax revenue fell by 12.6 percent in the first quarter of 2009, compared to the same quarter a year earlier, based on data for 47 early-reporting states. Forty-five of these states had declines in total tax collections.
  • Personal income tax revenue fell sharply and represented the bulk of the decline, with a 15.8 percent year-over-year decrease. This is the largest such decline since 2002.
  •  Sales tax collections continued their fall with a decline of 7.6 percent, while corporate tax collections dropped 16.2 percent. This is the second quarter in a row that revenue from all three major sources declined.
  •  Many states are already reporting even further revenue shortfalls in the second quarter of 2009 on personal income tax returns due in April.
  •  The employment picture for the quarter was sharply and broadly negative. The number of jobs fell in every one of the 50 states, and most showed declines of more than 1 percent compared to the previous quarter.

Read the full report (.pdf) here.