Receipts from income and sales taxes typically tend to lag behind the national economy, and any recent gains could be reversed should a slump occur. Last week, the federal government reported a surge in first-time claims for jobless benefits, to the highest level since November, while manufacturing activity in the Philadelphia area fell for the first time in a year, a sign of economic slowdown.
Mississippi Treasurer Tate Reeves said he anticipates that the national economy will continue to take a toll on his state’s finances.
“Things aren’t getting a lot better, but they’re no longer getting a lot worse,” he said. “We do think the recovery is going to be a slow one.”