Tax revenues generated by U.S. states will recover during the next fiscal year, finally exceeding the tax receipts prior to the economic downturn.
Sales, corporate and personal income taxes revenues are growing nationwide, the Associated Press noted.
According to the National Governor’s Association (NGA), overall state tax receipts are projected to increase by 4.1% in fiscal 2013, reaching $690.3 billion, marking the third consecutive year that tax receipts have increased.
Fiscal 2013 will also top 2008’s tax revenues by $10 billion.
Spending by state governments, by contrast, was projected to rise by just 2.2%, well below levels seen before the recession.
States are also beginning to add employees again. States added an average 3,000 employees per month over the last six months, though they shed 5,000 employees last month.
Government officials commented that the rising tax revenues were stabilizing state budgets, with only eight states experiencing sudden financing shortfalls this year. In 2010, 39 states encountered budget shortfalls.
Some states continue to struggle, however, including California, which faces a $16 billion budget gap this year despite rising tax revenue.
While tax receipts have grown overall, not every state has benefited equally. In fact, in fiscal 2013, 23 states will see tax revenues lower than those received in 2008.