A report released by the National Governor’s Association on state fiscal health shows that the federal government is not alone in maintaining its steady growth rate. State budgets are growing by a compound annual rate of 6.4 percent from 1979-2007, which when adjusted for inflation, amounts to real growth of 2 percent.
The report can be found here; it was highlighted in today’s BNA Daily Tax Report.
Of particular note: revenues last year came in at over 3 percent higher than budgeted overall, with 37 states ahead, 10 even with budget targets, and only two states reporting financial performance below budgeted expectations. Strong performances in sales and income taxes (both personal and corporate) indicate economic vitality, which is good news.
Note that states seem to keep their budgetary houses in order; query whether we will ever elect a Congress that tries seriously to do the same.