The Census Bureau has stated its recently collected data and statistics reflect the most dramatic drop in state revenue amounts since 1951, the year the US Census began recording state revenue data.
A total $477 billion drop in “insurance trust revenue” – mostly money from pension funds, while tax collections fell by $66 billion, states reported.
In an interview with The Washington Post, Nicholas Johnson the director of the state fiscal project at the Center on Budget and Policy Priorities stated Fiscal 2012 “will actually be the most difficult budget year for states ever”.
The Center on Budget and Policy Priorities reported last month that states will see budget shortfalls totaling more than $140 billion next year as they continue to wrestle with depressed revenue levels while federal stimulus dollars and reserves run out.
In 2009 states suffered record-breaking losses to their pension funds and in their tax revenues, as the recession wreaked havoc on payrolls and investments.
Revenues plummeted by 30.8 percent, from $1.6 trillion in 2008 to $1.1 trillion in 2009, according to the report.