Post by Budget Barometer on Jul 8, 2009 6:03:46 GMT -5
Budget Barometer
California's one-year deficit is Indiana's two-year budget
Indiana legislators were close to the wire last week when they passed our state's biennium budget, with a mere five hours to spare. The two-year budget for Indiana is $27.8 billion. California's budget gap for the next year stands at $26.3 billion.
Legislators in Connecticut, Illinois, North Carolina, Ohio and Pennsylvania are still negotiating - even though the new fiscal year got underway July 1. For Illinois, this is the third consecutive year the Prairie State has begun a new fiscal year without adopting a budget.
California's controller is now issuing more than 28,000 IOUs to companies and individuals that are owed millions in income tax refunds by the state. The governor has declared a fiscal emergency and state employees have been ordered to take a third unpaid day off each month.
More than half of all states across the U.S. are patching budget gaps by imposing tax hikes, an action that is widely unpopular with citizens. The widespread problem reflects a consecutive drop in tax revenue due to the recession. Overall, 48 states have sought to close $166 billion in budget gaps.
Actions by some of the states include:
Delaware - Increase top income tax rates to 6.95 percent for four years; state employees will see a 2.5 percent reduction in pay because of a five-day furlough plan.
Massachusetts - State sales tax will increase from 5 to 6.25 percent; other tax increases include hotels, alcohol, meals and satellite dishes.
New Jersey - Property tax rebates cut, income taxes raised.
Mississippi - Tax hospitals to fund Medicaid.
New Hampshire - Increase restaurant and hotel taxes, impose 10 percent tax on gambling winnings over $600, five percent dividends tax on limited liability companies, increase car and boat registration fees.
Oregon - Tied with Hawaii for the highest state income tax rate; the budget increases income tax and the corporate minimum tax (from $10 to a sliding scale that tops out at $100,000).
Wisconsin - Increase taxes and cut aid to schools and local governments.
View the list of state workforce furloughs
If you are having difficulty viewing this e-mail version, you may view the newsletter online here
California's one-year deficit is Indiana's two-year budget
Indiana legislators were close to the wire last week when they passed our state's biennium budget, with a mere five hours to spare. The two-year budget for Indiana is $27.8 billion. California's budget gap for the next year stands at $26.3 billion.
Legislators in Connecticut, Illinois, North Carolina, Ohio and Pennsylvania are still negotiating - even though the new fiscal year got underway July 1. For Illinois, this is the third consecutive year the Prairie State has begun a new fiscal year without adopting a budget.
California's controller is now issuing more than 28,000 IOUs to companies and individuals that are owed millions in income tax refunds by the state. The governor has declared a fiscal emergency and state employees have been ordered to take a third unpaid day off each month.
More than half of all states across the U.S. are patching budget gaps by imposing tax hikes, an action that is widely unpopular with citizens. The widespread problem reflects a consecutive drop in tax revenue due to the recession. Overall, 48 states have sought to close $166 billion in budget gaps.
Actions by some of the states include:
Delaware - Increase top income tax rates to 6.95 percent for four years; state employees will see a 2.5 percent reduction in pay because of a five-day furlough plan.
Massachusetts - State sales tax will increase from 5 to 6.25 percent; other tax increases include hotels, alcohol, meals and satellite dishes.
New Jersey - Property tax rebates cut, income taxes raised.
Mississippi - Tax hospitals to fund Medicaid.
New Hampshire - Increase restaurant and hotel taxes, impose 10 percent tax on gambling winnings over $600, five percent dividends tax on limited liability companies, increase car and boat registration fees.
Oregon - Tied with Hawaii for the highest state income tax rate; the budget increases income tax and the corporate minimum tax (from $10 to a sliding scale that tops out at $100,000).
Wisconsin - Increase taxes and cut aid to schools and local governments.
View the list of state workforce furloughs
If you are having difficulty viewing this e-mail version, you may view the newsletter online here