"The Return of State Surpluses Could Point to More Growth to Come"

[applegrove]

The Return of State Surpluses Could Point to More Growth to Come

by Daniel Gross at the Daily Beast

http://www.thedailybeast.com/articles/2013/04/01/the-return-of-state-surpluses-could-point-to-more-growth-to-come.html

"SNIP.................................................


That’s happening—and more. In the current fiscal year (fiscal 2013, which started last spring or summer in most states), the level of spending rose just 2.2 percent from fiscal 2012, according to the National Association of State Budget Officers (NASBO). That’s far below the historical average of 5.6 percent growth per year. But state revenues are growing more rapidly than spending. In the fourth quarter of 2012, according to the Nelson A. Rockefeller Institute of Government, state tax receipts were up 5.7 percent from the fourth quarter of 2011. For the full year, revenues probably rose about 4 percent. Now, late 2012 tax receipts were boosted in part because so many companies rushed dividend payments out the door to avoid the prospect of higher taxes.


Still, with revenues rising more rapidly than spending, deficits are evaporating in state capitals. “It’s likely most states will end the year with a slight surplus,” said Brian Sigritz, director of state fiscal studies at NASBO.


Surpluses are showing up in places you’d expect. North Dakota, currently enjoying an energy and agricultural boom, is projecting a $1.6 billion surplus over its two-year budgeting cycle. Texas, another resource-rich state, foresees an $8.8 billion surplus over its current two-year budget cycle.


But the Rust Belt is also regaining some of its fiscal shine. Ohio is expecting a $1 billion surplus for the current fiscal year. Wisconsin is looking at $484 million in black ink. Other states with surpluses include Iowa ($800 million) and Tennessee ($580 million). West Virginia completed its 2011–12 fiscal year with a surplus of about $88 million.


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[applegrove]

1. No wonder the GOP are pushing so hard for austerity. How else to undo an economic recovery that

the Obama administration might benefit from.

[elleng]

2. Zacly.

[bhikkhu]

3. All good news - but California is the big one

A strong democratic governor and a progressive tax policy = budget surplus for 2012-2013 there: http://money.cnn.com/2013/02/07/news/economy/california-budget/index.html

Very good news for the state I grew up in, and economic growth seems to have come back. I am sooooo glad romney didn't win, as we'd all be listening to the repugs crow from the rooftops about how they turned things around!