Court Weighs Cases That Could Impact State Tax Revenues

By Mark Walsh

WASHINGTON--At a time when state finances have been racked by the recession, the U.S. Supreme Court is considering a number of cases that could have major implications--either adverse or positive--for state tax revenues.

The cases do not deal directly with school finance or with the spending side of states' ledgers. But their impact on revenues could affect the amount of money that cash-strapped states have available for public education and other services.

"State officials have to be concerned'' about the outcomes of these cases, said Christopher Zimmerman, the chief economist of the National Conference of State Legislatures. "There is the threat of almost instant damage...