Backed by Gov. O'Malley and Democrats, the $264 million tax package raises taxes and averts spending cuts.

Among the changes McDonnell said he is considering are lowering the overall sales and use tax and expanding it to cover services as varied as car repair, tax preparation and pedicures now exempt from the tax. The sales tax is paid now only on retail merchandise.

Gov. Bev Perdue will ask legislators to spend an additional $562 million on K-12 schools and increase the state sales tax in the $20.9 billion budget she plans to release Thursday.

Gov. Jerry Brown is targeting a new part of the budget to close a widening deficit by seeking to reduce state worker costs in his revised spending plan, according to sources with knowledge of his plans.

With fewer than two months before the state budget is due, Gov. Chris Christie said he wants the state Legislature to deliver laws changing the tenure system for public school teachers in a way that will result in decreased taxes for New Jersey residents.

An increase in jobs the past 12 months will bolster state income tax receipts.

Indiana's state tax collections are now slightly ahead of projections for the budget year after a big revenue jump during April.

Iowa lawmakers have reached a tentative agreement on education spending and plan to introduce a bill that would represent the largest commercial property tax cut in state history.

The Kansas Senate on Wednesday approved a $14.4 billion state budget for the next fiscal year after adding money for public schools and property tax relief.

A new state budget report Monday showed a steep decline in tax revenues and a widening deficit now projected at $200 million for the current fiscal year that ends June 30.

This fifth edition of Rich States, Poor States provides 50 unique snapshots from our "laboratories of democracy" for you to evaluate. Study the rankings, read the evidence, and learn about the proven principles that lead to economic growth, job creation, and a higher standard of living for all Americans.

This report analyzes the tax cap proposal in light of previous efforts to limit property taxes in New York and other states. Among the findings, New York's local property tax levels are exceptionally high by national standards and have grown by more than double the inflation rate over the past decade, justifying the governor's push to limit future growth.

Georgia should continue to push the reforms that have made this one of the best managed states in the nation, but innovation is the best opportunity for true reform. Tax, regulatory and tort reform will create the right conditions for innovation in the private sector while the state pursues innovation in the areas of criminal justice, education and heath care.

A guide to needed reforms in pensions, taxes and higher education, among other areas, with  two types of goals that are important when working towards limiting government: long-term policy objectives that show the end-game goals and short-term policies that steer public policy towards the long-term goals. This guide provides both.

Nevada seriously needs genuine, revenue-neutral fiscal reforms, and this report seeks to fill that vacuum. It analyzes the actual volatility of Nevada's current taxes - and the taxes lawmakers keep signaling they want. It covers important tax-related issues, such as achieving economic efficiency and tax equity, while reducing compliance costs as well as tax-induced distortions in economic behavior. It advocates implementing priority-based budgeting.

Article presenting the elimination of the Oregon state income tax and the end forced unionism as solutions to both budget problems and lack of business growth.

This report focuses on limiting the regulatory burden in the state and other types of recommendations to improve growth.

Proposals to tax Internet retail sales are all the rage as states continue to look for more ways to balance their budgets in the face of revenue shortfalls.

Bloated state spending levels and trillions of dollars in unfunded government employee pension liabilities pose huge financial obstacles to economic recovery in the 50 states today. This begs the million-or trillion-dollar question: Why are some states prospering while others are still struggling?

There has been an impression created in the press and embraced by many that the LBB report suggests that adoption of the bill CSHB1 by Texas would cost Texas 272,000 jobs in 2012 and 335,000 jobs in 2013. This answer, at least as interpreted by the press, is wrong and not based on sound economics. The passage of CSHB1 will not cause less jobs in Texas relative to any other option at hand.