Monday, July 18, 2011

Many States Create Surpluses as Congress Struggles with Debt



While the Federal Government does not need to have a budget, every state, except for Vermont, are required to balance their budget. Creating a sound budget and adhering to it will produce a positive result. While Washington is spending like drunken sailors, every state made the hard choices. Making those hard choices help produce a better economy. This is why a governor is better suited to run this country than a senator or a congressman. While senators and congressmen pander to special interest groups, governors will make the hard choices that he or she believes is right for his or her state. Thus, if creating a budget helped states become fiscally responsible, why does not Obama following the same suit?

(Washington Times) As Washington stares at rising national debt and projected deficits for years to come, many states are faced with the opposite problem: whether to spend their budget surpluses and, if so, on what.

The biggest drivers of surpluses are higher-than-expected tax collections. Thirteen states have reported revenue higher than anticipated, according to the National Association of State Budget Officers. Only two states reported less tax revenue than expected, and another 31 states were on target. Four states have not finished the 2011 budget cycle.

Last year, 46 states reported revenue at lower-than-expected rates, and the tax turnaround is, to some, an indication that the economy has begun to turn around.

The biggest drivers of surpluses are higher-than-expected tax collections. Thirteen states have reported revenue higher than anticipated, according to the National Association of State Budget Officers. Only two states reported less tax revenue than expected, and another 31 states were on target. Four states have not finished the 2011 budget cycle.

Last year, 46 states reported revenue at lower-than-expected rates, and the tax turnaround is, to some, an indication that the economy has begun to turn around.