New York Governor Andrew Cuomo is betting he can hold the line on spending for five years to pay for tax cuts. Investors back the plan, even as it leaves out the cost of renewing contracts with the state’s biggest unions.
California is moving to pay down debt and boost reserves after an economic rebound left it with the biggest surplus in more than a decade. Hawaii may increase spending on education. Officials in Florida, New York, Minnesota and Wisconsin are considering tax cuts.
New York Governor Andrew Cuomo, who faces re-election in November, wants to use a projected $2.2 billion surplus to cut taxes. That’s fine with bond investors, who say that three consecutive on-time budgets leave the state on a path of fiscal improvement.
Ron Ford knows that Illinois, the state with the worst credit rating in the U.S., will have returned to financial health when he and about 19,000 other vendors get paid the combined $8.8 billion owed them. That day won’t come soon.
Florida Governor Rick Scott shows how governors in at least nine states are approaching re- election campaigns next year by touting surpluses and pitching tax cuts, sometimes relying on one-time revenue to fund the breaks.
For the past four years, U.S. states struggled to close more than $500 billion of budget shortfalls caused by the recession, ushering in tax increases, spending cuts and clashes with public-employee unions.
National Association Of State Budget Officers Photos