Report: States' tax collections fall again

States faced declining tax collections in 4Q; more budget cuts or tax increases likely needed

HELENA, Mont. (AP) -- States again saw sharp declines in tax collections in the last quarter of 2009 -- a record fifth straight quarterly drop, according to a new report that predicts more looming spending cuts or tax increases.

Overall, revenue from state tax collections dropped 4.1 percent for the quarter compared to the same quarter in 2008, the Rockefeller Institute of Government reported Tuesday.

For some governors and lawmakers already grappling with painful budget decisions, the latest figures -- while offering more evidence of the grim economy -- weren't all that surprising.