News-Record.com

I’m cleaning out the ol’ e-mail box here at the end of a busy week, and a few folks have passed along this story from the LA Times. (May be some registration required.)

It begins:

PHOENIX — After years of cost-cutting and staring down deficits, states suddenly find themselves awash in extra dollars that are funding tax cuts, teacher pay increases and roadwork across the country.

Only four states have had to deal with deficits as legislatures rush to finalize budgets before the end of the fiscal year on June 30. The rest are enjoying surpluses that have fueled a 4.2% growth in state government spending, the biggest surge since 1999.

So what’s the bad news? This:

But state financial officials aren't celebrating yet. Much of the new money comes not from higher wages of taxpayers, but from less sustainable sources, such as the super-heated housing market, skyrocketing corporate income taxes or taxes on investment gains earned by richer citizens.

(Read the whole thing.)

There’s certainly been a good deal of debate here in NC about what is actually surplus, what is one time money and what is mere accounting gimmickry.

Folk from NC are quoted in the Times piece, although I’m sort of surprised that the writers didn’t pick up on the fact that the budget would likely spend more AND make a few trims to taxes.

Speaking of the budget, the head honorables are still holed up in the legislative building hashing through various proposals. Last I heard, folks were hoping to read in a compromise budget (ie: officially introduce it) early next week and try to pass it Thursday, but that may be hog wash…or maybe I should say “blog wash.”