Wednesday, November 11, 2009

One Top 10 list NYS missed...

CNN highlights the 10 states that are in the deepest financial trouble....

While those budget gaps are pretty shocking, it's clearly the severity of the downturn in revenues that has caught states off guard. Consider this chart with the two quarter moving average of state tax revenues.

While there have been some swings over the past forty years, there has been one consistent theme -- states have been able to count on revenues growing year in and year out. The current downturn has struck every revenue stream for the states - real estate transactions, sales taxes, income taxes, etc. California, for example, has projected that it might be 6 years before revenues return to levels seen in 2008.
I'm not a political being, but I think someone needs to share this data with the people in Albany. Hard choices need to be made without the fear that every special interest group is organizing another bus trip protest to Albany.

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