Skip to comments.WSJ: State Budgets Get Relief With Surge in Revenues - Corporate Profits, Rise in Pay, Housing Deals
Posted on 06/14/2005 5:34:11 AM PDT by OESY
Strong gains in corporate profits, household income and home sales are swelling tax revenues for states nationwide, helping to close budget gaps and boost spending.
State-tax revenue for the July-March period of the fiscal year ending June 30 reached $387 billion, up 9.5% from the year-earlier period.... Tax collections in the January-March quarter were up 11.7%, the strongest year-on-year growth for that period since at least 1991. The institute also says that if the current pace continues, states are on track to take in a record $550 billion for the full fiscal year, which ends June 30 for most states....
The latest numbers mark a healthy turnaround from just a few years ago when many states were struggling. After the tech bubble burst in 2000, followed by the plunge in the stock market and recession, tax collections fell sharply across the country. But how long states will enjoy the current boon is unclear.
The rise in revenues stems partly from factors that may be short-lived, such as an unusual surge in bonuses or the huge Microsoft Corp. dividend payout. And most states still face budgetary pressures. According to the National Conference of State Legislatures, as of February, 31 states reported spending overruns for some portion of the budget during the current fiscal year, compared with 23 states reporting overruns in November.
Health-care costs are one of the biggest problems. Through the first eight months of the fiscal year, July to February, Medicaid and other health-care spending is exceeding appropriation in 23 states compared with 16 in November, the National Conference says.
For now, though, the windfall has loosened purse strings, boosting spending plans for roads in Florida, teachers in New York and public transportation in California, state officials say....
(Excerpt) Read more at online.wsj.com ...
Now if we can only get them to stop spending more, we'll be able to balance the budget.
I second that.
When campaigning, Warner succeeded in getting a lot of pubbie support by promising NOT to raise taxes. Needless to say, the media isn't punishing him a la Bush I.
"Needless to say, the media isn't punishing him a la Bush I."
Quite the contrary. They are pushing his name as a possible presidential contender as a "mocerate" Southern Governor. I live in Virginia, he is neither moderate nor Southern. Having lived in Fairfax county for thirty plus years, I can assure you that it "ain't" southern. We may as well live in Boston.
Simply Great News.......!
Great tag. ;-)
Bonuses and the MS dividend are responsible for the rise in tax collections? This is actually from the WSJ?
Hello? How about real estate?