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States Discover, Spend Surpluses

Embarrassment of riches will benefit education, gay rights, or just make tax cuts

By Jonas Oransky,  Newser Staff

Posted Jun 11, 2007 11:15 AM CDT

(Newser) – Oversized tax collection has left state governments with unexpected funds to dole out, and newly Democratic governments are working some big-government swagger. The Times reports that more than 40 states have deeper coffers than budgeted, and new money is going to local initiatives in education, health care and gay rights—and back to taxpayers.

While 23 newly flush states have tax cuts on tap, two-thirds of US governors plan to grow health care. States like Colorado, Iowa and Oregon, exemplars of the Democratic sweep to state power last year, have used their money to beef up civil rights laws, bringing gay citizens a couple steps nearer to equality.

Graphic shows state annual budget increases over the past three decades
Graphic shows state annual budget increases over the past three decades   (Associated Press)
Quarter
Quarter   ((c) samlens)
New York Gov. Eliot Spitzer listens to discussion during a meeting with legislative leaders at the Capitol in Albany, N.Y. Wednesday, June 6, 2007.  (AP Photo/Tim Roske)
New York Gov. Eliot Spitzer listens to discussion during a meeting with legislative leaders at the Capitol in Albany, N.Y. Wednesday, June 6, 2007. (AP Photo/Tim Roske)   (Associated Press)
California Governor Arnold Schwarzenegger waves to reporters as he walks up to Canadian Prime Minister Stephen Harper's office prior to their meeting  in Ottawa Wednesday May 30, 2007.(AP Photo/Tom Hanson, CP) Canada
California Governor Arnold Schwarzenegger waves to reporters as he walks up to Canadian Prime Minister Stephen Harper's office prior to their meeting in Ottawa Wednesday May 30, 2007.(AP Photo/Tom Hanson,...   (Associated Press)
New York Mayor Michael Bloomberg, left, and New York Gov. Eliot Spitzer exchange verbal jabs at the beginning of a New York news conference, Thursday June 7 , 2007.  Bloomberg's plan to ease Manhattan traffic through congestion pricing got a boost Thursday from U.S. Transportation Secretary Mary Peters, who announced...
New York Mayor Michael Bloomberg, left, and New York Gov. Eliot Spitzer exchange verbal jabs at the beginning of a New York news conference, Thursday June 7 , 2007. Bloomberg's plan to ease Manhattan...   (Associated Press)
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