Abstract
Readily available tax statistics tell state and local policymakers the amount and mix of revenues that their governments receive. However, these officials pose harder fiscal questions than simply how much money is flowing into their coffers and from what sources. They frequently ask, What is the state's capacity to raise revenues, regardless of how much we actually collect? To what extent is that capacity utilized? Is revenue capacity sufficient to finance the state's need for public services? These questions are especially salient today, given that during state fiscal year 2002 revenues in most states fell far short of their targeted levels. Interstate comparisons for FY1997 are presented.