States Currently Facing The Worst Fiscal Periods Since The Great Depression
February 19, 2010
The National Association of State Budget Officers: Fiscal Survey of States, Fall 2009 report concludes: “States are currently facing one of the worst, if not the worst, fiscal periods since the Great Depression. Fiscal conditions significantly deteriorated for states during fiscal 2009, with the trend expected to continue through fiscal 2010 and even into 2011 and 2012. The severe national recession drastically reduced tax revenues from every revenue source during fiscal 2009 and revenue collections are expected to continue their decline in fiscal 2010. As state revenue collections historically lag behind any national economic recovery, state revenues will remain depressed throughout fiscal 2010 and likely be sluggish into fiscal years 2011 and 2012.”
“These are the worst numbers we have ever seen.” As the executive director of the National Association of State Budget Officers, Scott D. Pattison said that only federal stimulus funds that will soon be exhausted have prevented widespread paralysis.
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