Budget Troubles of State Governments
Advent of Fiscal Reckoning for the States
Along-Postponed DAY of fiscal reckoning has arrived for many states of the American Union. During most of the years since World War II, the great majority of state governments have lived beyond their income. Despite rounds of tax-raising in 1947, 1951, and 1955, the increase in state tax receipts has lagged substantially behind the rise in state outlays. In 1958, the revenues from all sources of all the states were not sufficient to cover the year's total expenditures.
Between 1946 and 1958,1 state tax revenues climbed from y$4.9 billion to $14.9 billion, an increase of 204 per cent, while over-all expenditures (including payments to local governments) were rising from $7 billion to $28.1 billion, a ...