Empire state of mind

From New York to California, revenues of American states are surging – but only a few are using the windfall to eke out a stronger economic position.

While the US as a whole continues its painstakingly slow trudge towards economic recovery, last month’s State of the State speeches showed US governors have thrown off the shackles and are sprinting towards November elections with surpluses not seen since the US recession.

State reserves hit a total of $US67 billion nationally, according to a report last month from the National Association of State Budget Officers. That is impeccable timing for almost three-dozen state governors who are up for re-election.

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