Brief State Savings Prop Up Spending After 2001 Recession
Elaine Maag, David Merriman
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The states experienced rapid and dramatic nominal revenue declines following the 2001 recession, but spending did not follow suit. The chart in this article shows general fund revenues and spending from 2000 to 2006 (not adjusted for inflation) and savings as a percent of prior-year expenditures. Spending over the 2001-2003 period was essentially flat in the face of lower revenues, and a drop in savings made up some of the shortfall.
Research Areas Taxes and budgets
Tags State and local tax issues Federal budget and economy Financial stability
Policy Centers Income and Benefits Policy Center