JEFFERSON CITY, Mo. (AP) – Just a year ago, the financial outlook for state governments looked bleak as the coronavirus pandemic shook the entire U.S. economy. But today, many of those same states are flush with cash.
Lawmakers in some states have passed budgets with record spending. At the same time, many states are socking away billions of dollars in savings. In some states, budgets are up 10% or more for the fiscal year that starts July 1.
Analysts give partial credit to federal pandemic relief. But some Republicans had criticized the amount of money going to states in the Biden administration’s relief package, saying it was unnecessary.
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