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Report Identifies Decline in Revenues as Source of State Budget Pressures

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Report Identifies Decline in Revenues as Source of State Budget Pressures

March 29, 2012

A new report released on March 28 by the Georgetown University's Center for Children and Families finds that the decline in state revenues is the source of budget pressures for states"”not Medicaid.


Medicaid spending during the most recent recession was not a major factor in contributing to state budget shortfalls, and although spending on Medicaid grew due to increased enrollment because of the recession, the federal government bore the majority of additional spending.


The report finds that the greater challenge to state budgets rests with the declines in revenues, particularly from personal income taxes, state sales taxes and corporate income taxes, which"”together"”account for nearly 80 percent of state income.


For more on the examination of state revenue declines and Medicaid spending, check out Georgetown's report, State Budget Woes: Revenue Declines, Not Medicaid Spending, Are to Blame.