James Pethokoukis

Politics and policy from inside Washington

The worrisome fiscal situation of states

September 4, 2009

A fun factoid from Gov. Mitch Daniels of Indiana shows just how much trouble states are in (via WSJ):

From 1930 to 2008, our national average annual real GDP growth rate was 3.49%. After crunching the numbers, my team has estimated that it would take GDP growth of at least twice the historical average to return state tax revenues to their previous long-term trend line by 2012.

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