From Newsmax:

A severe, widespread drop in personal income tax collections spells serious fiscal trouble for many communities, according to a new report from the Rockefeller Institute of Government.

Less taxes increase the risk that states will need to make mid-year budget cuts, raising the possibility that local governments might not meet their debt obligations - including payments their municipal bonds.

State personal income tax collections fell by 26 percent, or $28.8 billion, January through April 2009 compared to a year earlier.

Thirty-four of 37 reporting states saw declines, the institute reports.

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