Addressing State Budget Deficit
|U.S. states tax collections fell for the fourth consecutive quarter as job losses and the economic recession cut revenue from income and sales levies. -Nelson A. Rockefeller Institute of Government
“Despite indications that the national recession may be over, the revenue situation remained gloomy in virtually every state in the third quarter,” according to the report. A number of states are collecting less than they projected, and “further revenue shortfalls and more spending cuts are most likely on the way for many,” the institute said.
Total tax revenue declined in 44 states.
State budget deficits will exceed $350 billion in the next two years. -Center on Budget and Policies
Preliminary tax collection data for the July-September quarter of 2009 show continued widespread and sharp declines for most states for all three major sources of tax revenue, as well as for overall taxes.
Overall, tax revenue declined by 10.7 percent in nominal terms. -Nelson A. Rockefeller Institute of Government
BREAKDOWN OF DECREASED TAX REVENUE:
Personal income tax declines represented a $6.7 billion loss.
REGIONAL BREAKDOWN OF DECREASED TAX REVENUE:
The Far West region was the weakest by far in terms of personal income tax revenue collections.
The current economic situation and its resulting decrease in U.S. state’s tax revenue have and will continue to have detrimental effects on programs running on state funds. At least 42 states have cut spending, with 28 reducing outlays for health care, and 26 for schools. More than 30 states increased taxes or fees this year . -The Rockefeller Institute
THE ADVANTAGES OF MOBILE LOTTERY:
Mobile Lottery will serve as an enormous supplement to the current revenue of land-based lottery systems. Its added convenience, accessibility and technological abilities have the potential to create a multi-billion dollar rise in state revenue collected from the sale of lottery tickets. The increased state revenue would successfully combat the trend in funding cuts for education and healthcare, while also potentially allowing for increased funding of similar programs.