States' revenue growth sluggish

USA Today reports:

A four-year boom in state tax collections appears to be ending, just as states are starting to accelerate spending for education and health care.

State and local government tax collections grew 4.4% in the first quarter of this year, the lowest growth rate since the start of 2003, according to the federal Bureau of Economic Analysis.

However, spending rose 7.6% in the first quarter, the highest rate since 2001. Medicaid spending, which had unexpectedly declined last year, has taken off again, rising 9.2% in the first quarter. That's the highest quarterly growth rate for the health care program in almost a decade.

State legislatures have been using Medicaid savings from last year to increase coverage.

Government seems to mostly grow and grow.