State Revenues Still Dropping

Not that the fed is doing any better.

From the Bond Buyer:

WASHINGTON — Tax revenues continued to fall in the July-to-September quarter of 2009 — the fourth consecutive quarter of decline — for all 44 states that reported their third-quarter results to the Rockefeller Institute of Government, according to its preliminary report released yesterday. Surprising revelations in the report include California’s relatively moderate year-over-year declines.

No states were spared from the recession’s drag on tax collections, the Rockefeller report said. All states reported losses, but Alaska suffered the most overall compared with last year, while the fiscally ailing California actually fared better than many states.

Overall state tax revenues fell nearly 11%, to $119.7 billion from $134 billion, compared with the same quarter last year. The worst-hit region for overall revenue was the Southwest, which saw a 21.5% total decline. The Southeast fared best, with an 8.1% drop. For states, Alaska had a 52.4% decline in overall revenue, followed by Vermont at 31.6% and Oklahoma at 28.4%. New Hampshire reported a mere 1.3% dip.

Personal income tax made up nearly 40% of revenue that states did collect, the report said. Even so, those revenues fell 11.4%, representing $6.7 billion of lost revenue. Every state that reported personal income taxes saw a decline in that category, and 21 of them reported double-digit drops. Alabama and Indiana had the worst numbers for third-quarter personal income taxes, dropping 26.7% and 20.3%, respectively

Alaska has been hit financially by fluctuations in the oil market and the largest drop was found in corporate taxes.