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State Revenue Rose as 2010 Income-Tax Yield Fell

General revenue of state governments increased 4.5 percent to $1.56 trillion in fiscal 2010, helped by President Barack Obama’s economic-stimulus program and other federal grants, according to U.S. Census Bureau figures.

The total rose even as tax receipts, the biggest source of general revenue, fell 1.9 percent, to $702.2 billion, from 2009, according to the report released today. Income levies produced 4.3 percent less cash than in the previous year, the second straight drop, the report shows. Federal aid jumped 17 percent to $555.3 billion, with most of it for public welfare support.

“States were able to raise limited additional funding in 2010, whether it be through the collection of taxes, charges or receipt of additional federal monies,” Lisa Blumerman, the bureau’s governments division chief, said in a statement about the latest data.

Budget deficits of more than $500 billion have been closed by states in the past four years, the National Conference of State Legislatures said Dec. 1 in a report. Halfway through the second quarter of fiscal 2012, the report showed four states -- California, New York, Missouri and Washington -- projected a current-year gap totaling $4.4 billion, down from 15 states and $26.7 billion at the same point a year earlier.

To contact the reporter on this story: David Mildenberg in Austin, Texas, at dmildenberg@bloomberg.net.

To contact the editor responsible for this story: Mark Tannenbaum at mtannen@bloomberg.net.

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