State tax revenues in the second quarter dropped 17% compared with the same period the previous year, the worst decline since the 1960s, according to Census Bureau statistics released Tuesday. State income taxes were down 28% from 2008, and sales tax revenues decreased 9%. About two-thirds of state revenues come from these two sources. "This brings really bad news for almost every single state and leaves them with unprecedented budget crises," said Lucy Dadayan, a senior policy analyst with the Nelson A. Rockefeller Institute of Government at the State University of New York.

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