NCPA - National Center for Policy Analysis

States Enjoying Fruits Of Financial Responsibility

May 26, 1997

State governments across the nation are reveling in good times, the result of getting spending under control and a booming economy. "They've got more money than they know what to do with," said an analyst at the National Conference of State Legislatures.

  • Governors have cut $10.5 billion in taxes over the past three years and plan some $4.4 billion in new reductions for 1998.
  • Altogether, states had more than $20 billion left over at the end of 1996.
  • High-tax states such as California have gotten "a wake-up call" to give relief, or see industry flee to nearby states with better tax manners.

The good times should keep rolling. The economic forecasting firm, Regional Financial Associates, is projecting even higher economic growth for states in almost every economic region than it did just six months ago.

Source: Amy Borrus, "The States are in Fat City -- For Now," Business Week, May 26, 1997.

 

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