U.S. States Expect Taxes to Rise After Facing $84 Billion Gaps
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U.S. state governments project revenue will climb in the current fiscal year after they raised taxes and cut spending to close budget gaps of $84 billion, a report from the National Conference of State Legislatures found.
Revenue will increase 3.7 percent, after falling 1.5 percent in fiscal 2010. Even so, deficits of more than $12 billion may open for at least 29 states should Congress fail to extend extra aid, while two-thirds already forecast fiscal 2012 gaps of $72 billion, according to the conference’s survey.