State Tax Revenue Surges

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State tax revenue rose in 2011. It may not be enough to save the jobs of many public sector workers as states and local government continue to austerity drives meant to offset receipts which were low in 2008 and 2009 along with high pension obligations.

The Nelson A. Rockefeller Institute of Government reports that

States’ tax collections grew for the eighth straight quarter at the end of 2011, for the first time topping peak revenue levels seen at the beginning of the Great Recession,


With the exception of the Far West, all regions of the country saw gains in tax revenue during the fourth quarter of 2011, the report shows. The Plains region had the largest gain, at 12.5 percent, followed by the Great Lakes states at 8.9 percent. The Far West showed a decline of 3.9 percent in tax collections — led by an 8.3 percent decline in California alone.

The report does not predict what will happen to receipts if the economy slows again this year, or what the effects of a further drop in the housing market may be.