States Enjoy Budget Surpluses
UPI
June 11, 2007

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U.S. states have been experiencing budget surpluses, mainly because of higher than expected tax collections, The New York Times reported.
Lawmakers in more than 40 states have been using the surplus funds for tax cuts and infrastructure repairs, and setting aside extra funds for rainy day emergencies, the newspaper said Monday.

Corporate tax revenues have been running higher than budget estimates, and local economies have provided greater than expected revenues to the states. In addition, the Times said Medicaid spending fell from an 11 percent annual growth rate to about 7 percent in recent years.

Even though states have enjoyed rebounding revenues, many states have some catching up to do on infrastructure spending, said Ray Scheppach, the executive director of the National Governors Association.

"Because states cut back so in the early part of the decade," he said, "they put off maintenance, they put off building, things like that, so they are beginning to do some one-time spending."


Governors in 23 states where revenues were up proposed tax cuts, the Times reported.

if the economy is so bad then why the surplus in taxes?

>>>Duh. States HAVE to run surpluses because they cannot run deficits. Nor can they print money.

ofcourse states can run deficts..... there called bonds...... You are confusing the balenced budget act a few states have passed. But the balanced budget also incude infusion of cash from Bonds wich are a liability and a debt.....

and most of these so called balanced budgets dont include the legacy cost of the beurocratic payroll.....