“States face worse revenue shortfalls in the next recession compared with the Great Recession, S&P said. That is because states rely more heavily on personal income taxes as a percentage of general fund revenues now than a decade ago, with the taxes currently contributing a combined 55 percent to the funds compared with 49 percent in 2008, S&P said. … Increased social costs like Medicaid could also contribute to the steepening of budget shortfalls, it said.”

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