States see first surplus in years

USA Today reports:

States and local governments took in more money than they spent in the first three months of this year — their first surplus since 2007 — in a sign that the worst of the budget crisis may be over.

The fortunes of many governments could improve dramatically this year if the national economic recovery continues, a USA TODAY analysis found. A flood of federal stimulus money and a modest upturn in tax receipts have improved the health of states after two years of financial havoc.

Revenue has grown faster than spending for three straight quarters, reports the Bureau of Economic Analysis. Tax collections are up, too, although they remain below the peak of 2008.