Tax Hikes Barely Balance State Budgets, Report Finds

By Lonnie Harp

ORLANDO, FLA.--The unprecedented $18 billion in politically painful tax increases approved by state legislatures this year will buy little more than break-even budgets, lawmakers from across the nation were told here last month.

The continuing stress on state budgets caused by the recession and the prospect of more dismal months ahead were underscored in a report released by the National Conference of State Legislatures at its annual meeting here.

Despite tax increases that set a single-year record, the report said, reduced programs and moves to dip into reserve or "rainy day" accounts were also...