Interesting article.
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.
At least a dozen states ended fiscal 2011 with surpluses. Indiana reported one of the largest, with an extra $1.2 billion in its accounts. Gov. Mitch Daniels, a Republican, on Friday authorized bonus payments of up to $1,000 for state employees. An employee who “meets expectations” will get $500, those who “exceed expectations” will receive $750 and “outstanding workers” will see an extra $1,000 in their August paychecks.
Other states are bulking up their savings accounts. Maine finished the year with a surplus of nearly $50 million. About half will go to the state’s reserve, the Bangor Daily News reported. Iowa closed its books with $480 million left over, on top of an already healthy “rainy day fund.”
Ohio Gov. John Kasich, a Republican, on Sunday touted the fact that since taking office in January, he has helped the Buckeye State turn its deficit into a surplus.
“In my state, where we faced an $8 billion deficit, we wiped it out. We eliminated it,” he said on “Meet the Press.”
Arkansas, South Carolina and other states also ended their fiscal terms firmly in the black. During the depths of the recession a few years ago, states emptied reserve accounts or raised taxes to make ends meet. Unlike Washington, nearly all states are required by law to balance their budgets each year. Only Vermont lacks such a requirement, according to the National Conference of State Legislatures.
