States’ Revenue Picture Mixed So Far This Year, NCSL Says

By Linda Jacobson — December 10, 2007 2 min read
  • Save to favorites
  • Print

While revenue projections are being met or exceeded in many states, collections in other states are not keeping up with what policymakers and finance officials expected when they crafted their budgets for fiscal 2008, according to a report released today by the Denver-based National Conference of State Legislatures.

Three Midwestern states—Iowa, Kansas and Nebraska—have raised their revenue forecast for this fiscal year, as have Idaho, New Mexico, Texas, Utah, Washington, and Wyoming in the West. Alaska is expected to do the same. But some of the largest states in the country—California, Florida, and New York—are among the 11 that are revising their estimates to show lower-than-expected revenues.

“Although early warning signs do not portend immediate bad news, concerns for current year budgets are mounting with even greater concern for some states in FY 2009,” the Dec. 10 report says, adding that if the national economy “takes a turn for the worse, state finances undoubtedly will decline from the situation reported here.”

See Also

For more stories on this topic see Finance.

The report is based on information collected from legislative fiscal directors in November and reflects information from the first quarter of the fiscal year.

The report also confirms data released last week by the National Governors Association and the National Association of State Budget Officers, which showed a continued slowdown in revenue collections in the states. In addition, 15 states had reported deficits or shortfalls in revenue for the current fiscal year. (“Analysts See Continued State Fiscal Slowdown,” Dec. 5, 2007.)

The fiscal outlook, the report says, will determine how much flexibility states have in the areas that account for roughly half of their general funds—health care and K-12 education.

Slowdown in revenue growth also comes at a time when several states are expected to tackle such education finance issues as equity and adequacy, and the condition of school facilities.

And a few states are already spending more on education this fiscal year than expected. Both Connecticut and Kansas reported higher-than-projected costs for special education. Minnesota also reported “unbudgeted increases” in education costs.

In the area of tax collection, the report found that personal income taxes were the strongest category, with 19 states reporting collections that exceeded expectations in the year’s first fiscal quarter. Conversely, sales taxes were weak—at least 19 states reported lower-than-projected collections in that same period.

The report also found that problems in the housing market nationwide hurt revenues in about half of the states. At least 13 said that sales taxes were down because of the housing sector’s woes, and at least a dozen saw real estate transfer or recording taxes drop.


This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Student Well-Being Webinar
A Whole Child Approach to Supporting Positive Student Behavior 
To improve student behavior, it’s important to look at the root causes. Social-emotional learning may play a preventative role.

A whole child approach can proactively support positive student behaviors.

Join this webinar to learn how.
Content provided by Panorama
Recruitment & Retention Live Online Discussion A Seat at the Table: Why Retaining Education Leaders of Color Is Key for Student Success
Today, in the United States roughly 53 percent of our public school students are young people of color, while approximately 80 percent of the educators who lead their classrooms, schools, and districts are white. Racial
Jobs January 2022 Virtual Career Fair for Teachers and K-12 Staff
Find teaching jobs and other jobs in K-12 education at the EdWeek Top School Jobs virtual career fair.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Federal Citing Educator and Parent Anxieties, Senators Press Biden Officials on Omicron Response
Lawmakers expressed concern about schools' lack of access to masks and coronavirus tests, as well as disruptions to in-person learning.
5 min read
Dr. Rochelle Walensky, Director of the Centers for Disease Control and Prevention, left, and Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases and chief medical adviser to the president, testify before a Senate Health, Education, Labor, and Pensions Committee hearing to examine the federal response to COVID-19 and new emerging variants, Tuesday, Jan. 11, 2022 on Capitol Hill in Washington.
Dr. Rochelle Walensky, director of the Centers for Disease Control and Prevention, left, and Dr. Anthony Fauci, chief medical adviser to the president, testify at a Senate hearing about the federal response to COVID-19.
Greg Nash/Pool via AP
Federal Miguel Cardona Should Help Schools Push Parents to Store Guns Safely, Lawmakers Say
More than 100 members of Congress say a recent shooting at a Michigan high school underscores the need for Education Department action.
3 min read
Three Oakland County Sheriff's deputies survey the grounds outside of the residence of parents of the Oxford High School shooter on Dec. 3, 2021, in Oxford, Mich.
Three Oakland County Sheriff's deputies survey the grounds outside of the Crumbley residence while seeking James and Jennifer Crumbley, parents of Oxford High School shooter Ethan Crumbley, on Dec. 3, 2021, in Oxford, Mich.
Jake May/The Flint Journal via AP
Federal In Reversal, Feds Seek to Revive DeVos-Era Questions About Sexual Misconduct by Educators
The Education Department's decision follows backlash from former education Secretary Betsy DeVos and other conservatives.
4 min read
Illustration of individual carrying binary data on his back to put back into the organized background of 1s and 0s.
iStock/Getty Images Plus
Federal Biden Administration Lays Out Its Top Priorities for Education Grants
The pandemic's impact and a diverse, well-prepared educator workforce are among areas the administration wants to fund at its discretion.
2 min read
Education Secretary Miguel Cardona speaks during the daily briefing at the White House in Washington on Aug. 5, 2021.
U.S. Secretary of Education Secretary Miguel Cardona speaks during a White House briefing.
Susan Walsh/AP