Taxes & Revenue

 

Information regarding state tax policy and recent revenue performance. State revenue is generated through a variety of sources, including both general fund taxes and other taxes and fees earmarked for special purposes or specific funds. Personal income and sales taxes comprise nearly 75 percent of general fund revenue.  State revenues have begun to recover from the economic downturn, although forecasted fiscal 2012 revenue collections remain well below peak levels witnessed in fiscal 2008.

Staff Contact: Brian Sigritz

NASBO Publications

  • The latest edition of NASBO’s State Expenditure Report finds that total state spending in fiscal 2014 is estimated to have grown at its fastest pace since before the recession, largely due to an increase in federal Medicaid funds as a majority of states chose to expand enrollment under the Affordable Care Act. Total state spending growth in fiscal 2013 was more modest; however, total state expenditure did return to positive growth following declines in fiscal 2012.
  • State budgets are expected to continue their trend of moderate growth in fiscal 2015 according to governors’ spending proposals. Consistent year-over-year growth has helped states achieve relative budget stability, but progress remains slow for many states. With each passing year of slow improvement, more and more states are moving beyond recession induced declines and returning to spending and revenue growth. According to executive budgets, general fund spending is projected to increase by 2.9 percent in fiscal 2015.

Recently Released Reports