State, local governments continue to spend more than they earn

State and local governments in Maryland, Virginia and the District spent $7.82 billion more than they collected in revenue between 2007 and 2012, during the throes of the economic downturn, according to data released from the U.S. Census Bureau last month.

The trend mirrors national data in which state and local government expenditures largely outpaced revenue during that period, forcing some to take on extra debt. Many governments have since changed course in the aftermath of the recession, clamping down on spending and taking in more in tax revenue. But economists say the picture in the Washington area, where economic growth has been lagging behind that of the rest of the nation, continues to be marked by millions of dollars in shortfalls.

Maryland and Virginia continue to face major shortfalls — $1.2 billion and $2.4 billion, respectively — according to recent estimates. A sluggish economic recovery in the Washington region, coupled with a spate of federal government budget cuts, have led to higher levels of unemployment and, as a result, less income tax revenue for local governments.

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