States are projecting limited tax growth in 2012 and in subsequent years.

From the National Conference of State Legislatures:

Fiscal year (FY) 2012 marks the second consecutive year state officials are forecasting state tax growth compared with the previous fiscal year (FY). This is a welcome development in the states following the revenue declines that occurred in FY 2009 and FY 2010, the height of The Great Recession. Although most states are projecting tax collections to grow in FY 2012, two-thirds are anticipating growth of less than 5 percent. However, even small improvements are good news for state budgets as they emerge from historically bad fiscal conditions. At the same time, officials in some states expressed concern about whether they will hit their collection targets. It is likely that many states will revisit their forecasts before legislatures convene their 2012 sessions.

Meanwhile, corporate tax dodging in the states – including Kentucky – costs $42 billion in just three years:

68 of the 265 Fortune 500 companies profiled paid no state corporate income tax in at least one of the last three years and 20 of them averaged a tax rate of zero or less during the 2008-2010 period.

Among the 20 corporations paying zero or less in state corporate income taxes over the three year period are: Utility provider Pepco Holdings (DC); pharmaceutical giant Baxter International (IL); chemical maker DuPont (DE); fast food behemoth Yum Brands (KY); high tech manufacturer Intel (CA).

And you have your governor serving as a public apologist for that mess.