May 4, 2012 – The National Conference of State Legislatures (NCSL) has released its “State Budget Update: Spring 2012” report, which shows that revenue performance remains positive, expenditures in most states are stable and few states have faced mid-year budget shortfalls in fiscal year (FY) 2012. “For the first time since before the recession, some states have found themselves in the fortunate situation of having excess funds halfway through the budget year,” said Arturo Perez, director of NCSL’s fiscal affairs. “Many states anticipate using them to rebuild rainy day funds or will carry them over into FY 2013.” Revenue performance through the first eight months of FY 2012 has been a key factor in the improved condition of state finances. Sales taxes and corporate income taxes generally performed better than personal income taxes.
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