State Tax Revenue Gains in May

Resurgent revenue among U.S. states, whether driven by tax receipts, tax increases or stock market activity (read: California). The upshot, as the following excerpt shows, is the best state revenue gains since 2006, and a changing mindset with respect to austerity and further budget cuts.

Evidence of a turnaround in state finances seemed to surface almost daily in May. California, Texas, Ohio, Connecticut, New Jersey, Michigan, and Colorado all reported higher-than-­anticipated tax revenues, setting off a scramble to rejigger budget projections. In nearly every state in the nation, revenue is up, year over year, for the fifth straight quarter, according to reports by Goldman Sachs (GS) and the Nelson A. Rockefeller Institute of Government. The Rockefeller report, released on May 24, pegged the overall increase in the first quarter of 2011 at 9.1 percent, the largest gain since 2006.

via State Budget Cuts, Reconsidered – BusinessWeek.


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