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Tuesday, July 19, 2011

As DC Debates Debt Ceiling, States End Year in Surplus

As the federal government turns a debt ceiling debate into an international credit crisis, perhaps Washington could learn a thing or two from the states. 

Roughly two dozen of the 46 states that just ended their fiscal year are on track to record surpluses, a budget analyst with the National Association of State Budget Officers said. The rest of the states are expected to at least balance their books. 

Despite the weak economic picture, the state capitals managed to mop up the red ink through a combination of revenue increases and spending cuts -- because they have to. 

Unlike the federal government, nearly every state has a statutory or constitutional requirement to enact a balanced budget. U.S. House Republicans this week are pushing a proposal on Capitol Hill to hold Washington to the same standard -- the plan would require Congress to approve a balanced-budget amendment to the U.S. Constitution as a condition for raising the nation's $14.3 trillion debt ceiling. 

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2 comments:

Anonymous said...

Who wants to put money on that Maryland is NOT one of them????

Anonymous said...

Agree I am sure Maryland isn't one. I pose another question, how many of the states who end with a surplus have legislation that is ccontrolled by republicans?