Monday, July 6, 2009

At Least 38 States Overestimated Tax Revenues

From The Washington Times:

Errors force governments to make cuts.

JEFFERSON CITY, Mo. | With its IOUs and plans to close state offices three days a month, California gets all the attention as lawmakers fight to write a budget set off balance by a $26.3 billion deficit.

But the dozens of states that made spending cuts, tapped into reserves or relied on federal stimulus funds to patch together budgets that took effect this past week are hardly free from worry. Many of those spending plans are based on tax revenue projections that have been wrong throughout the recession - and may be unreliable again.

Read more ....

My Comment: The political class has been voicing that this economic crisis is the worse since the Great Depression .... and now they are surprised by budget forecasts. Please .....

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