The first half of 2014 was positive for muniland after a very tough 2013, but weak spots still remain.
Muniland relies on state and local government revenues, which were up slightly for the first quarter. Early indications suggest that the second quarter will also be up (though personal income taxes were off more than expected). The Census Bureau reported that first quarter 2014 tax revenues for four state and local government tax categories increased 2.4 percent to $295.7 billion from $288.7 billion in 2013.
Some states are lagging on the revenue front. The Rockefeller Institute, which tracks state revenues, found seven states that had revenue come in significantly below budget in April: Kansas, Rhode Island, Vermont, Ohio, Mississippi, Arizona and West Virginia. California revenues weakened in May, but year-to-date they still exceed projections by $1.8 billion, or 2.1 percent. It will take about 45 days until a complete revenue picture is available for the first half.