Recent reports on state revenues carry mixed implications for highway and other state-funded construction, according to the Associated General Contractors' Chief Economist Ken Simonson.
"Data from 46 early-reporting states shows collections from major tax sources increased by 11% in nominal terms in the second quarter of 2011 compared to the same quarter of 2010," the Rockefeller Institute of Government reported on Thursday. "This is the strongest year-over-year growth since the second quarter of 2005. Tax collections now have been rising for six straight quarters, following five quarters of declines. However, revenues were still 7.8% lower in the second quarter of 2011 than in the same period three years ago. Every state except New Hampshire reported growth in overall tax collections for the fiscal 2011 [year and for the latest quarter] compared to fiscal 2010."
Investment adviser Thompson Research Group, which tracks revenues in 13 large states, reported on Thursday, "Fuel tax collections for FY [fiscal year] 2010-11 were up 1.7% from FY 2009-10 and 1.3% from 2008-09. Collections in FY 2010-11 were down 10.8% from the peak year 2007-08. State contacts continue to see a slow recovery ahead, and some, a slowdown over the next 6 months."
