NEW YORK (MainStreet) – Consumers aren’t the only ones feeling the pinch from the lousy economy. State and local governments brought in $587.5 billion less revenue in 2009 than in the previous year – a 22.1% decrease – according to a new U.S. Census Bureau report.
While most tax revenue categories experienced declines that year, property tax was the one exception, increasing 3.7% to $424 billion in 2009.
Despite the overall loss in revenue, spending actually increased 4.6% for state and local governments in 2009, totaling almost $3 trillion. The largest expense was education, which totaled $850.7 billion.
The findings come from the 2009 Annual Surveys of State and Local Government Finances, which include statistics on revenues (including taxes), expenditures, debt and assets (cash and security holdings) for state and local governments. The full report is available on the Census Bureau website.