The state budget surpluses

In an amazing group of articles over the last week, we have heard that in many of the states that have slashed bloated budgets, there will be surpluses for the next year since revenues have recovered a bit from their recent lows. According to the articles, the pressure is now on the various legislatures to restore the cuts that were made. This gives rise to a question of national importance: Will we ever learn our lesson? Will we ever come to understand as a country that there are limits on what government can do?

The point is a simple one. The states and local governments were in way over their heads when the revenue stream tanked in 2008. The problems was not just lost revenue; it was also excess spending. When the revenue returns, the result should not be retroactive raises for state employees or new funding for failed programs. Excess revenue should be used to promote economic growth within the state, and that can best be done by lowering taxes within that state or paying off debt undertaken by the state.