An article in The New York Times reported that several states, including California, are now talking about having the problem of having “too much money”. After years of cutting cost while in the recession, these states are debating how to handle this new problem of budget surpluses. There is uncertainty of whether this problem will continue or is only a one-time deal. This uncertainty poses the question of whether this newly found money should be saved for potential future recessions or should be spent to restore cut programs.
The article states that Todd Haggerty, a policy analyst with the National Conference of State Legislatures, said, “They’re not talking about how to close a budget gap anymore, which is a welcome relief after years of that during and after the Great Recession. Rather, states are having conversations about how to allocate increased revenues.” The debate continues to determine what the next steps are for these states.
Read more about this at http://www.nytimes.com/2013/05/26/us/californias-new-problem-too-much-money.html?nl=todaysheadlines&emc=edit_th_20130526