Posted 11/10/2023, 3:34:49 PM
States Face Budget Troubles as Tax Revenue Drops for 14th Month
- States' tax revenue falling for 14th straight month, signaling budget troubles ahead
- Economic growth cooling, tax cuts, weak stocks contributing to revenue drop
- Healthy rainy day funds will cushion impact temporarily
- States will need to raise revenue, cut spending, or tap reserves
- Pandemic-era revenue growth reversing as federal stimulus ends
- Interest rate hikes also dampening state budgets reliant on sales taxes
- Big states like NY, TX, CA already seeing signs of tax revenue slowing
- Revenue shortfalls likely to force spending cuts, not immediate crisis