From the Rockefeller Institute comes news of devastating shortfalls in state income tax revenue.
In FY 2008, personal income tax revenue made up over 50 percent of total tax collections in six states — Colorado, Connecticut, Massachusetts, New York, Oregon, and Virginia. Personal income tax revenue declined dramatically in all six of these states for the months of January-April of 2009 compared to the same period of 2008.
For all states, income tax is roughly 1/3 of total taxes and revenue dropped 25%. That translate to an immediate and probably unexpected shortfall of 8%, a big hit indeed. Oregon looks to be the worst hit, their shortfall is 18%, while California’s is 15%.