Monday, May 11, 2009

Local Government Tax Base Cratering

Ugly. And this isn't going to get any better, any time soon:

The Nelson A. Rockefeller Institute of Government: State Revenue Report
...Total tax revenue declined in 35 states in the fourth quarter, with six states seeing double digit declines. All regions except for the Plains region saw declines in total state tax collections, with the Far West seeing the largest decline at 7.6 percent. In the Plains region, revenue growth was weak, at 0.4 percent in the fourth quarter...

At the very least, glance through the report and check out the graphs.

I recall the old adage from back in the Tech Bubble years, the mantra that the freshly scrubbed, well dressed boys and girls would repeat over and over on CNBC: "the trend is your friend." Well, the real quote should have been: "staying on the right side of the trend is your friend."

h/t Karl Denninger at The Market Ticker

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