Surprise! States Running Surpluses

By Justin Gardner | Related entries in Business, Economy, Money

The doomsayers are out in full force today…which I find puzzling.

After all, the jobs report today, while not overtly positive, was still nearly 200,000 better than the previous month and one would think it could be seen as either neutral or slightly positive.

Yes, many of the jobs added were seasonal and created by the government…but that’s still money going back into the economy and job experience that folks didn’t have before. And, trust me, that’s a good thing for those workers.

And now we get a sign that states, who were seriously suffering the last two years, are actually bringing in more than they were spending.

From USA Today:

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.

And here’s a look at the states’ spending over the past decade…

Long story short…we’re headed in the right direction. And don’t let anybody tell you differently.

This entry was posted on Saturday, June 5th, 2010 and is filed under Business, Economy, Money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “Surprise! States Running Surpluses”

  1. Tweets that mention Donklephant » Blog Archive » Surprise! States Running Surpluses -- Says:

    [...] This post was mentioned on Twitter by Justin Gardner, Donklephant. Donklephant said: DONKLEPHANT: Surprise! States Running Surpluses [...]

  2. atara@israel Says:

    for the whole world its very important news- so many countries depence on economy of usa. i am glad its getting better

  3. Lee Thomas Says:

    Wall Street’s economic worries were bolstered by the Labor Department’s jobs report, which showed the U.S. created 431,000 jobs last month, However the government said 411,000 of the jobs were Census jobs, leaving just 21,000 for the private sector.

    More bad news.

    The Census Bureau continues to hire 100,000′s of thousands of people monthly to bolster the jobs report. How do they do that.

    It seems they fire them. Then hire them back.

    As far as the states beginning to turn around. The real story to that as well is that each state has a balanced budget and they have had to lay off many, many workers. Close parks. Arizona for example has closed every park in the state except the Grand Canyon.

    Barak Obama doesnt realize that his policies are actually showing the states that they can manage with a vastly reduced budget. That they can in fact lay of workers, cut costs and still function and all they have to do is blame it on Obama.

    Barak Obama’s policies are actually showing the way for both Business and State Governments that they can all function and make money on vastly reduced staffing levels.

    Jobs will never come back with this set of legislators in office.

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