More than 40 states are reporting huge revenue shortfalls, according to a new report from the National Governors’ Association. The report notes that most states will be aggressively seeking new funds and revenues in the 2009-2010 fiscal year.

Many businesses, including advertising and marketing groups, are watching states closely for an indication of where governors and legislatures will turn to find the new funds. Among the taxes discussed are new gross receipts tax requirements and significant increases in business and corporate fees.

While no state to date has proposed a tax on advertising time and space, the 4A's and other marketing groups are continuing to monitor budget developments closely. A number of states have formed study committees to make recommendations about broadening the sales tax to include more services, such as advertising.

Watch this site for more information on specific state proposals.