Republican Govs. Rick Perry, left, of Texas and Rick Snyder of Michigan and other Republicans who control a majority of the state capitols in the United States are facing a philosophical dilemma – what to do with all the money where an improving economy has suddenly created a surplus in revenues.JEFFERSON CITY, Mo. – Turns out that cutting was the easy part. Now Republicans who control a majority of the state capitols in the United States face a far greater philosophical dilemma – what to do with all the money when an improving economy suddenly creates a surplus in revenues.
Save it? Refund it though tax cuts? Or spend it?
Though they won majorities in more than half the statehouses on principled platforms of making government smaller, some Republicans now are feeling tremendous pressure to spend newfound money on roads, buildings and schools that had been neglected or cut during the recession-induced downturn of recent years.
“Everybody wants that money,” said North Dakota Senate Majority Leader Rich Wardner, where an oil industry boom has fueled one of the largest per capita budget surpluses in the nation.
Only a few states still face budget difficulties several years after the Great Recession forced widespread cuts to public education and social services, according to a new report by the National Conference of State Legislatures. To the contrary, a growing number anticipate that they will finish the 2013 fiscal year with surpluses, some totaling hundreds of millions of dollars.