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State governments emerging from the coronavirus pandemic built historic cash surpluses as inflation in prices and wages drove up sales and income tax collections.
JEFFERSON CITY, Mo. -- State governments emerging from the coronavirus pandemic built historic cash surpluses as inflation in prices and wages drove up sales and income tax collections.
Many states are banking millions of dollars off COVID surpluses as the Federal Reserve fights inflation with higher interest rates.
Still, financial experts are nonetheless urging caution on spending because of concerns the U.S. could slip into a recession.
State governments have decided to work towards building historic cash surpluses due to skyrocketing inflation and wages that's driving up the sales and tax collections.