Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

4/2/2013 (2 years ago)

Catholic Online (www.catholic.org)

Higher revenues are chipping away at the massive federal deficit

In many states, revenues are rising more rapidly than spending. As a result, deficits are evaporating in state capitals and governors have begun having once more. Are happy day here again?

Happily, state revenues are growing more rapidly than spending.

Happily, state revenues are growing more rapidly than spending.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

4/2/2013 (2 years ago)

Published in Business & Economics

Keywords: State surpluses, financial growth, public works, prosperity


LOS ANGELES, CA (Catholic Online) - "This spring, budget surpluses are blossoming across America. We've noted that the combination of employment growth and tax increases is boosting federal revenues significantly - 13 percent in the first five months of the current fiscal year," analyst Daniel Gross says. "Combined with a bit of fiscal discipline, the higher revenues are helping to reduce the (still massive) federal budget deficit."

America's 50 states aren't allowed to run deficits. "So each year, state legislatures pass, and governors sign, budgets for the next fiscal year in which expenditure are supposed to align with expected revenues. Then, they wait and hope that the revenues actually materialize."

Gross says that this is happening with increasing frequency. For the current fiscal year (fiscal 2013, which started last spring or summer in most states), the level of spending rose just 2.2 percent from fiscal 2012, according to the National Association of State Budget Officers. This figure is below the historical average of 5.6 percent growth per year.

Happily, state revenues are growing more rapidly than spending. "In the fourth quarter of 2012, according to the Nelson A. Rockefeller Institute of Government, state tax receipts were up 5.7 percent from the fourth quarter of 2011. For the full year, revenues probably rose about 4 percent. Now, late 2012 tax receipts were boosted in part because so many companies rushed dividend payments out the door to avoid the prospect of higher taxes."

With revenues rising more rapidly than spending, deficits are dwindling away in state capitals. "It's likely most states will end the year with a slight surplus," Director of State Fiscal Studies at NASBO, Brian Sigritz says.

Gross cites the example set by North Dakota, currently enjoying an energy and agricultural boom. That state is projecting a $1.6 billion surplus over its two-year budgeting cycle. Texas, another state rich in oil and agriculture, foresees an $8.8 billion surplus over its current two-year budget cycle.

Surprisingly, the Rust Belt is also regaining some of its fiscal shine. Ohio is expecting a $1 billion surplus for the current fiscal year. Wisconsin is looking at $484 million in black ink.

Other states with surpluses include Iowa ($800 million) and Tennessee ($580 million). West Virginia completed its 2011-12 fiscal year with a surplus of about $88 million.

The one state with a gloomy forecast is known by this currently ironic moniker "the Golden State," California. "For the past several years, California's massive, recurring deficits have made life miserable for politicians and inspired comparisons to Greece."

However, there is a silver lining. "Thanks to tough spending cuts, higher taxes, and a general recovery, California's finances are on the mend.

"California expects to take in $2.4 billion more in revenue than it will spend this fiscal year, which ends June 30," Tami Luhby of CNN Money reports. "After paying off a shortfall from last year and setting aside funds for upcoming obligations, it's on track to end the year with a $36 million surplus."

---


Pope Francis: end world hunger through 'Prayer and Action'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for July 2015
Universal:
That political responsibility may be lived at all levels as a high form of charity.
Evangelization: That, amid social inequalities, Latin American Christians may bear witness to love for the poor and contribute to a more fraternal society.



Comments


More Business & Economics

Islamic State attempts to replace the U.S. dollar with gold coins Watch

Image of A five denar piece featuring a picture of seven wheat stalks, representing the

By Kenya Sinclair (NEWS CONSORTIUM)

The Islamic State has announced it will be producing gold currency with the goal of weakening the dollar. LOS ANGELES, CA (Catholic Online) - A video posted Saturday, August 29th by the Islamic State warns that replacing the dollar will be "the second blow to America's ... continue reading


Art collectors seek liquidity as market plummets Watch

Image of Picasso piece auctioned for a record $179.4 million.

By Atarah Haely (NEWS CONSORTIUM)

Inquiries about art loans reportedly increased after global equities plunged. The unfortunate event led many to view their collections as assets and investment to cash-in.  MUNTINLUPA, PHILIPPINES (Catholic Online) - Bloomberg Business reports many collectors and ... continue reading


BIRTHING PAINS - America on brink as markets plunge Watch

Image of Market collapse is just one of many signs that the end is approaching. What comes next?

By David Drudge, Catholic Online (NEWS CONSORTIUM)

The U.S. stock market opened with a bang on Monday, and it appears to be the same sound you hear when something catastrophic happens to your engine. Several commentators have already dubbed the day, "Black Monday" as the market appeared to be on track for its largest ... continue reading


FINALLY: Researchers reveal that sex does not sell Watch

Image of Sex and violence is not an edge in advertising.

By Linky C. (NEWS CONSORTIUM)

Maybe sex doesn't sell after all. This is what studies reveal in a recent academic journal released by the Psychological Bulletin. MUNTINLUPA CITY, PHILIPPINES (Catholic Online) - Violence and sex in commercials does not appear to sell anymore. Compared to themes and ... continue reading


3 great tips on how to spot an online purchasing scam Watch

Image of

By Talia Ramos (NEWS CONSORTIUM)

With a growing population of people having internet access worldwide, there are a lot of businesses outsourced from the World Wide Web. Online shops sprout left and right because of easy access and an almost free platform, but limits in security are present. If ever ... continue reading


BLEEDING U.S. DRY: Federal taxes draining as much as $17,955 per worker Watch

Image of Tax revenues are about $183,397,970,000 in constant 2015 dollars from the $2,489,016,030,000 in revenue that the Treasury collected for 10 months in fiscal 2014.

By Catholic Online (NEWS CONSORTIUM)

They are bleeding the U.S. - and us, dry with massive amounts of taxation. The federal government collected a record of approximately $2,672,414,000,000 in tax revenues through the first ten months of fiscal 2015. And yet - that national deficit just keeps on getting ... continue reading


National debt frozen at $18,112,975,000,000 for 150 days Watch

Image of Treasury Secretary Jacob Lew explained in a letter dated March 13 that some steps the Treasury would take during the debt issuance suspension period.

By Catholic Online (NEWS CONSORTIUM)

Treasury Secretary Jacob Lew has sent out a letter to Congressional leaders telling them that he was extending a "debt issuance suspension period" through October 30. The amount of the federal debt subjected to a legal limit set by Congress closed on Monday, August 10, ... continue reading


America needs Catholic leadership now, and here's how you can make it happen Watch

Image of Rallies have erupted across the country blaming the wealthy for the plight of the poor, but the truth is, everyone is to blame. Regardless of blame, it's time to talk about what to do, and that talk should be informed by Catholic teaching.

By Marshall Connolly, Catholic Online (NEWS CONSORTIUM)

The stock market is poised for a collapse and that's not a good thing for American jobs. As growth slows and the risk of another recession looms, Americans are left to wonder where the good times have gone.  LOS ANGELES, CA (Catholic Online) - Americans are barely ... continue reading


Pope's environmental encyclical clashes with Catholic Church's investments in oil Watch

Image of The pope's encyclical has prompted debate in Catholic organizations and other churches about divestment. To date, many major American dioceses have resisted the push.

By Catholic Online (NEWS CONSORTIUM)

It's a conflict of interest that concerns many. Pope Francis, with the release of his encyclical, called attention to world ecology and how much climate change - as well as the exploitation of the poor, hinges on "highly polluting fossil fuels." While this is ... continue reading


Print Struggles: Internet becomes United States' Number One source for news Watch

Image of Newspapers in seeing the digital revolution have now since gone online.

By Catholic Online (NEWS CONSORTIUM)

When people in the United States want to hear about what's breaking in the news - they turn not to newspapers or TV, but online news sources. The immediacy of online news and its ability to instantly update stories while they happen has many other forms of mass ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Colossians 1:1-8
1 From Paul, by the will of God an apostle of Christ ... Read More

Gospel, Luke 4:38-44
38 Leaving the synagogue he went to Simon's house. ... Read More

Saint of the Day

Saint of the Day for September 2nd, 2015 Image

St. Ingrid of Sweden
September 2: Born in Skänninge, Sweden, in the 13th century, St. Ingrid lived ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter