Arizona still broke
The state's finances remain in a freefall, according to the latest report from the Joint Legislative Budget Committee.
A JBLC bulletin tells us that in September, sales-tax collections were down nearly 16 percent compared to September 2008, and income-tax collections were down nearly 25 percent from September 2008. It's the 14th straight month of double-digit declines compared to the previous year.
Even worse: During the first three months of the fiscal year, the state has spent $2.8 billion, and has taken in $1.8 billion. Some of that has been papered over with federal stimulus dollars, but the projected shortfall in the current budget year is up to $2 billion. And next year's shortfall is anticipated to be even higher.
Once you make a few adjustments, the state's collections are now $233 million below the conservative projections upon which the budget was based.
What is so hard to understand? The higher taxes are, the less revenue they generate...
A JBLC bulletin tells us that in September, sales-tax collections were down nearly 16 percent compared to September 2008, and income-tax collections were down nearly 25 percent from September 2008. It's the 14th straight month of double-digit declines compared to the previous year.
Even worse: During the first three months of the fiscal year, the state has spent $2.8 billion, and has taken in $1.8 billion. Some of that has been papered over with federal stimulus dollars, but the projected shortfall in the current budget year is up to $2 billion. And next year's shortfall is anticipated to be even higher.
Once you make a few adjustments, the state's collections are now $233 million below the conservative projections upon which the budget was based.
What is so hard to understand? The higher taxes are, the less revenue they generate...
posted by Taxi Mark at 6:29 PM
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