State finances are the healthiest they've been in years, a new survey of state governments found, with tax collections higher than expected over the last several months. Costs remain a concern, however, as governments pay more for energy, health care and education.
Cash coming into states through tax collection is markedly improved, and while spending pressures are still a worry, they are less so than in previous years, according to the latest report from the National Conference of State Legislatures. The findings put hard numbers to anecdotal evidence that state officials across the country have reported.
"This continues the trend that began in 2003 and is a dramatic turnaround from three years ago," the report said, citing improved revenue performance in the current fiscal year, which began in most states in July, as well as outlook for the rest of the fiscal year. |