States See First Surplus in Years

[RamboLiberal]

Source: ABC News

States and local governments took in more money than they spent in the first three months of this year -- their first surplus since 2007 -- in a sign that the worst of the budget crisis may be over.

The fortunes of many governments could improve dramatically this year if the national economic recovery continues, a USA Today analysis found. A flood of federal stimulus money and a modest upturn in tax receipts have improved the health of states after two years of financial havoc.

Revenue has grown faster than spending for three straight quarters, reports the Bureau of Economic Analysis. Tax collections are up, too, although they remain below the peak of 2008.

"The turnaround is here, thankfully," says North Carolina budget director Charlie Perusse.

Most states, cities and school districts are still struggling to balance budgets whacked in a recession that began in December 2007. But most signs provide rays of hope. Behind the turnaround:



Read more: http://abcnews.go.com/Politics/Media/economy-states-surplus-years/story?id=10823758

[nichomachus]

1. Absolute nonsense. This is lie by statistic

The states are taking in more money than they spent because they have fired teachers, closed schools, slashed public programs, fired police and firefighters, closed libraries, closed parks or let them go to ruin, etc., etc. etc. None of this is a good thing.

It's like HP making a bigger profit by eliminating 9,000 jobs. Sure, they show a bigger profit, but it's not a good thing for the economy.

As Americans we have been carefully taught to look at one number -- one data point -- and use that as a measure of success. It's like the people who go to WalMart because the number on the price tag is lower than the store downtown. However, the overall cost to individuals and society of WalMart's low prices in not a good thing. It is ruining our economy.

[Lance_Boyle]

2. NC achieved this in part by withholding state income tax refunds.

Smoke, mirrors, and slimy politicians.

[marions ghost]

3. and by cutting university pay checks

across the statewide system. Even hit researchers who bring in money to the state. And a whole host of other damaging "cost-cutting" measures, too numerous to mention.

They reached into the pockets of the people all over the state and grabbed. We are all paying for
State and Federal corruption & the legacy of Bush.

Like somebody here said: Privatizing profits, Socializing Losses...

[Lance_Boyle]

7. I sympathize.

My private University employer has done the same - salary freeze for the past 2 years. My position is soft-money-funded and a yearly CoL raise was built into each grant I ride on, but the University still won't permit a salary increase. Wouldn't be fair to the hard-money folks. So instead they leave $ rotting away in active grants. Can't be spent on the salary increases it was approved to be spent on, and can't be reallocated within the grants. Wise fellows running the show here...

[proudohioan]

9. I'd like to try using that one on my landlord.....

See, by withholding my rent this month and next month, I have increased my income, therefore, I will be spending it, therefore, I will be stimulating the economy with it, therefore, it will indirectly trickle down to you, Mr. Landlord, and therefore, you, Mr. Landlord, will be in a MUCH better financial position than if I simply paid you 2 months rent.....

You see how well this logic works?

:sarcasm:

[Lance_Boyle]

14. To be fair to the slimy fucks who run NC (and yes, I know they are Democratic slimy fucks)

they did eventually pay out the refunds due. But they withheld them long enough to make this gimmicky numbers-bump talked about in the article. I doubt NC will see positive revenue in the second quarter.

[saigon68]

15. Blue dog slimebags

[No Elephants]

4. What role does stimulus money play in this news?

[jpak]

5. Lies, lies, lies and more statistics - everyone knows we are DOOooommmEd

DOOoooooooEd I tell ya

false untrue lies!

all of them!

:evilgrin:

[depakid]

6. I can think of a whole lot of states- large and small that ABC's shallow piece don't apply to

that in addition to some of the observations above.

Sounds more to me like the story is aimed at heading off a second stimulus that contains substantial and much needed aid to the states.

[lib2DaBone]

8. $200 tickets from red-light cameras, double parking fees, police now a "profit center"

Double increase in driver's license, fishing license or any other long-arm tax they could think of, increasing toll fees on roads and bridges while cutting repairs and service, nickle and dime weakest employees, raise millage rate on homeowners so property taxes increase while the value of their home plummets.

Any increase in revenue CERTAINLY was not due to local and state politicians reducing their 6 figure salary and perks.

[Lugnut]

10. Not in PA.

We're in the hole.

[melm00se]

11. does anyone here

actually think that there will be an immediate rebound?

it's far easier to go down than it is to go up.

the article clearly states that there are 3 reasons for this:

• Federal aid. The stimulus law's financial aid for states is peaking, sending $25 billion a quarter to states throughout 2010, about $15 billion a quarter in 2011 and $8 billion a quarter in 2012.

• Spending restraint. States and local governments increased spending just 0.01 percent last year to $2 trillion. They trimmed employment by 170,000 in the past year to 19.6 million in April.

• Tax rebound. Tax collections rose at an annual rate of 5.4 percent in the first quarter of 2010, the BEA reports. Doing best: the sales tax and corporate income tax. Still weak: personal income taxes.

so federal aid is helping, so is trimming of jobs and finally the turnaround in tax revenues.

does anyone here really like to see a continued downward spiral? this return to a healthy economy will be, at best a V shaped one, but more than like a U shaped one (and that will be a broad U shape.

[defendandprotect]

12. Based on what . . . ? Cutting needed programs?

[neverforget]

13. Apparantly Oregon failed to get this memo: $562 million budget hole next year

http://www.oregonlive.com/opinion/index.ssf/2010/05/oregon_suddenly_arrives_at_the.html

Oregon suddenly arrives at the edge of the cliff

Looking at a shocking $563 million budget shortfall, there's nowhere to go but down on spending on schools and other essential services

This time, there's no papering over the gaping hole that has opened in Oregon's budget for schools and other services. There's no sidestepping this one, no grasping at reserves, raising taxes or borrowing against the future.

Yes, as everyone in the Capitol kept telling one another after state economists delivered their surprisingly awful revenue forecast Tuesday, Congress may yet come to the rescue of Oregon and other financially strapped states.

But Oregon has budgeted too long on exactly that sort of hope and prayer.