States Rebound from Bleak Forecasts to Pass Record Budgets

Compared to a year ago, many states are now flush with cash.

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FILE - In this Monday, May 4, 2020 file photo, police officers patrol the area after Clearwater Beach officially reopened to the public in Clearwater Beach, Fla. Florida is among several states that amplified their 2021-2022 budgets with at least part of their share of a $195 billion state aid package from the recent American Rescue Plan Act signed by President Joe Biden. The state's record $101.5 billion budget is up roughly 11%, with bonuses for teachers, police and firefighters, and new construction projects at schools and colleges. (AP Photo/Chris O'Meara, File)
Image via AP Photo/Chris O'Meara

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JEFFERSON CITY, Mo. — Just a year ago, the financial future looked bleak for state governments as governors and lawmakers scrambled to cut spending amid the coronavirus recession that was projected to pummel revenue. They laid off state workers, threatened big cuts to schools and warned about canceling or scaling back building projects, among other steps. Today, many of those same states are flush with cash, and lawmakers are passing budgets with record spending. Money…

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