States throughout the nation are celebrating budget surpluses and cutting taxes by the largest amounts in 20 years, according to a report to be released today by the National Governors' Association.

• States enjoy budget surpluses amounting to $24 billion -- equal to 5.8 percent of overall state spending.

• Thirty-one states cut taxes this year by a total of $4.6 billion and increased spending by an average of 5.5 percent.

• State spending on welfare and Medicaid was lower than expected as more than one million people left welfare rolls in the past year.

• Eleven states have surpluses equal to 10 percent of spending and seven have surpluses of more than $1 billion.

Twenty-five states cut personal income taxes this year, while 13 reduced sales taxes and 11 trimmed business taxes. California, New York, Pennsylvania and Iowa cut all three.

Most states spent more on education and children's health initiatives. Almost all granted pay raises to state employees -- at a national average of 3.7 percent.