USA TODAY: State and local government finances continue to slowly improve, but the outlook is cloudy because federal aid to states will start to shrink in about eight months.
Revenue for states, cities, school districts and other governments increased 4.3% during the three months that ended Sept. 30 compared with the same period a year earlier, the Bureau of Economic Analysis reports. Spending rose 2.9%…
The amount of federal aid has risen 41% since the recession began in December 2007. By contrast, state and local tax collections rose 1.9% in the quarter but are still nearly 2% lower than when the recession hit.… (more).
