Taxes Boost State Coffers : Rising Revenue in 2010 Reflects Economic Gains but Won't Bridge Budget Gaps

The Wall Street Journal reports:

State tax revenue grew at the fastest rate in nearly five years during the fourth quarter, as the steadily improving economy and higher taxes in some states propelled strong growth in income- and sales-tax collections.

But most states still face budget cuts this year, as collections remain below pre-recession peaks and states are no longer able to fall back on stimulus funds from the federal government to fill budget gaps.