State tax revenues weakened during the first quarter of the year and could lead to fiscal 2009 budget cuts in the coming months, according to a report released this week by the Rockefeller Institute that joins a group of recent studies predicting deeply troublesome times ahead for states.

The institute's latest quarterly report shows that state tax revenues increased only 1.7% from January to March compared with the same quarter a year ago. The forecast is on par with a report by the National Conference of State Legislatures released in late-April, and one by the National Governors Association and the National Association of State Budget Officers in mid-June, both of which said that state tax collections are falling and budgets will need to be scaled back as a result.

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