March 17, 2014
ONLY THE VALETUDINARIANS ARE SURPRISED...AND THAT'S THEIR NATURE:Bull market gives states surpluses (Reid Wilson, 3/15/14, Washington Post)
Across the country, state lawmakers and governors who had grown accustomed to recession-era budget shortfalls and politically painful cuts to schools, roads and other services are once again flush with cash. Now, they are debating whether to give some of it back to the taxpayers, spend it or save it for another rainy day.
The new surpluses are the result of a booming stock market, which has fueled a surge in personal income tax revenue in some states while boosting sales tax receipts in others. In California alone, the initial public offerings of Facebook and Twitter, which created hundreds of new millionaires and billionaires, pumped up to $3 billion into state coffers from capital gains taxes. [...]
The extra money has come as a bit of a surprise.
Policymakers were predicting more budget turmoil for states after the run-up to the "fiscal cliff" battles in Washington and continued uncertainty over tax rates and federal cuts.
As the stock market hummed, though, revenue perked up. Twenty-eight states ended fiscal 2013 with a surplus.
Posted by Orrin Judd at March 17, 2014 3:14 PM
« ON THE OTHER HAND, THE METRO'S FREE: | Main | AND TRAVEL WOULD BE A BIT LESS MISERABLE AN EXPERIENCE: »