The Panic of 1837 hit the following year, causing a sharp decrease in tax revenues, even as the state budget was already faced a large deficit because of the interest on the debt. Property taxes were the state's primary regular income, and to increase the revenue Noble proposed that the tax be levied ad valorem. The change would save the state a significant amount in administrative and collection costs, and make more land subject to taxation. The tax was approved and led to a 25% increase in revenue the following year, but it was still not enough to cover the deficit. Noble proposed the projects be prioritized, and work halted on the less important ones to conserve funds, but the plan was rejected. By the time Noble left office, the state's financial situation was bleak, but it was not yet fully apparent that far more had been borrowed than could be paid back. Despite the dire situation, Noble left office in 1837 as a popular political figure and was able to use his prestige to help elect David Wallace, his lieutenant governor, as governor.