WASHINGTON (AP) -- State tax revenues rose over the summer for the third straight quarter, giving a much-needed boost to beleaguered government budgets. The Rockefeller Institute, a research group at the State University of New York, says the amount of tax money states collected increased by an inflation-adjusted 2.6 percent in the July-September quarter, compared to the same period a year ago,
Still, the increases aren't enough to make life easier for governors and state legislators. Most states face persistent budget gaps that are forcing widespread spending cuts and tax hikes. Budget shortfalls have prompted many states to lay off government workers and cut programs, serving as a drag on the broader economy.
Tax revenue hasn't fully recovered from the impact of the recession. It is still 7 percent below what it was two years ago.
