Report: Strong economy helps states save more money

The AP reports:

Twenty-eight states' year-end balances increased over the 2004-2005 budget year, 19 states' balances declined and two experienced no change. No state ended with a deficit, though Arkansas was expected to end with a zero balance.

Nearly half the states' surpluses went into rainy day and other reserve funds:

_ Florida left $1.6 billion in its General Revenue Fund Reserve.

_ Maryland increased its rainy day fund by $593 million, Connecticut added $440 million, Georgia planned to add $430 million and Virginia prepaid deposits for future years. Tennessee added $172 million.

_ Alaska put $300 million into its Public Education Fund while placing another $300 million in a new reserve fund.

_ Wyoming sent $200 million to its Permanent Mineral Trust Fund and New Mexico placed $40 million into its Water Trust Fund.

Only three states _ Nevada, New Hampshire and New Jersey _ reported a decrease in spending compared with the previous year.

I guess the Keynesian notion that governments will or should cut back spending in good times doesn't seem to happen in the real world.